Three major reasons why dogcoin prices may face a major rebound

Key insights:

Dogecoin prices are repeating their trend in 2022, when patterns drove prices soaring 145% in a month.

In the past week, dogcoin whales have accumulated more than 430 million DOGE.

The long and short ratios of Binance and OKX show that traders still favor long positions heavily.

The price of Dogecoin was blocked after rising to around US$0.0705 in the day, and is currently trading at around US$0.07. DOGE opened close to $0.0697, then rose above $0.0700, once touching an intraday high near $0.07046, before giving up some of the gains.

DOGE prices are currently between the US$0.0695 support and the US$0.0705 resistance. At the same time, the market value of Dogecoin is approximately US$10.87 billion.

It is worth noting that cryptocurrency analyst Ali Martinez highlighted three key factors that may affect the next big round of Dogecoin. His analysis focuses on monthly technical signals, dogcoin whale accumulation, and an important level of on-chain resistance. At the same time, derivatives data shows that traders on major exchanges are still heavily inclined to long positions.

However, any price targets or forecasts mentioned herein are based on technical indicators and current market conditions and are not guaranteed results. The cryptocurrency market is changing rapidly, and actual prices may differ significantly from these estimates.

Readers should not view this article as financial advice and should conduct their own independent research before making investment decisions.

TD signals and whale buys support dogcoin price pattern

Ali Martinez posted on platform X that the Tom Demark sequence generated a buy signal for Dogecoin on the monthly chart last month. This signal appears at the same time as the inverted hammer pattern on the monthly chart.

DOGE Price Analysis| Source: Ali Martinez, Platform X

It is worth noting that Martinez compared the current pattern with the trend of Dogecoin in August 2022. At that time, DOGE formed a down-hammer pattern and a TD buy signal, followed by a cross-star candle.

According to Martinez, this sequence in 2022 predicts a 145% rise in the following month. The current chart again shows a down-hammer pattern and TD buy signals, and in addition, a cross-star candle is forming on the monthly time frame.

The second factor focuses on large-scale activities. Martinez reported that whales have accumulated more than 430 million DOGE in the past week. While the technical form was formed, these purchases increased the holdings of large Goucoin addresses.

DOGE Whale Positions| Source: X Platform

Dogecoin prices face resistance level of US$0.0813

The third factor involves a major on-chain resistance area at US$0.0813. Martinez identified this level through Dogecoin's UTXO realized price distribution data.

Previously, more than 30 billion DOGE had changed hands around $0.0813. Therefore, the price represents a huge historical trade accumulation area.

Martinez pointed out that after $0.0813, the next URPD resistance level is $0.177. However, Dogecoin first needs to continue to close above low resistance.

Before this resistance level becomes focus, the short-term price trend remains compressed. DOGE prices are currently trading between US$0.0695 support and US$0.0705 resistance. The intraday move to break through US$0.0700 was sluggish after hitting a high of US$0.07046.

Liquidation pressure shifts to long traders

Meanwhile, derivatives data from CoinGlass shows that liquidation pressure has changed during the latest trading cycle. DOGE recorded a total liquidation of $187.81 million in 24 hours.

Short liquidations totaled US$115.38 million, while long liquidations totaled US$72.43 million. More recently, however, pressure has shifted to long traders.

Dog coin clearing heat chart| Source: CoinGlass

Within 12 hours, the total clearing amount dropped to US$7330. The long liquidation amount was US$7280, and the short position was only US$52.37.

Similarly, all $2420 liquidations in 4 hours came from long positions. Another long liquidation of US$1540 was recorded within a one-hour period, and no short liquidation was recorded.

Despite these recent liquidations, exchange positions are still biased towards long positions. Binance's DOGE/USDT account long and short ratio is 3.08.

DOGE Long vs Short| Source: CoinGlass

At the same time, OKX's DOGE account ratio reached 5.47. By account, the ratio of top Binance traders is 3.7574.

Finally, by position, the long-short ratio of top Binance traders is 3.1459. These readings indicate that there are currently more long accounts than short accounts in the reported trading population.