Whales within the Dogecoin community have made a significant purchase of over 700 million $DOGE in the past 72 hours, amounting to approximately $112 million. The renowned technical and on-chain analyst, Ali Martinez, has revealed this substantial acquisition, indicating a high level of demand for the popular memecoin.
In recent times, traders have started diversifying their investments and considering memecoins like DOGE due to the increased supply from the Mt. Gox exchange. Bitcoin has remained relatively stable above $67,000 since May 23rd, prompting traders to explore alternative options.
QCP Capital, a Singapore-based crypto trading firm, has disclosed that traders are now turning towards legacy memecoins, namely Shiba Inu (SHIBA), Dogecoin (DOGE), and Pepe (PEPE). These memecoins have experienced significant gains ranging between 10-20% and have secured positions within the top 10 in the OI (Open Interest) list.
A thorough examination has shown that both PEPE and Floki (FLOKI) have witnessed an increase in their open interest rates within the last 24 hours. However, Dogecoin’s open interest is in the red, experiencing a decline of approximately 5%, which may potentially hinder a rapid V-shaped recovery for DOGE.
Dogecoin is currently approaching a critical support level at $0.15, amidst several bearish indicators. The open interest for DOGE has been decreasing since May 27th and is now below $900 million, indicating a pessimistic outlook. Furthermore, the declining CVD (Cumulative Volume Delta) suggests that sellers have maintained a stronger position since May 27th.
Nevertheless, DOGE remains in close proximity to a crucial short-term support level at $0.15. A surge in demand could propel DOGE towards the short-term supply range of $0.17 or even $0.20. Market participants are eagerly awaiting to observe DOGE’s performance within this emerging environment.
Tags: DOGE
