Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
Dogecoin (DOGE) holds a modest bullish bias, trading above the key <a href="https://xpertsstudio.com/bitcoin-price-risks-76k-drop-as-78k-support-weakens/” title=”Bitcoin price risks $76K drop as $78K support weakens”>support zone around $0.090 at the time of writing on Tuesday; however, it is capped below the 200-day Exponential Moving Average (EMA) near $0.094.On-chain data shows certain whale wallets are accumulating DOGE tokens, while strengthening derivatives metrics support a rally ahead for the meme coin.
Whales buying the dips
Santiment’s Supply Distribution data shows certain large-wallet holders (whales) buying DOGE meme coins during recent price dips, supporting a positive outlook for the token.
The metric indicates that whales holding between 1 million and 10 million (yellow line) and 10 million and 100 million DOGE tokens (blue line) have accumulated 519 million dog-themed meme coins since Sunday. This buy-the-dip scenario, signaled by the whale wallets, suggests sustained long-term interest among large-wallet holders.
Strengthening derivatives metrics
Dogecoin derivatives metrics show a bullish outlook. CoinGlass’ long-to-short ratio for DOGE reads 1.11 on Tuesday, nearing the highest level over a month. This ratio above one reflects bullish sentiment, as more traders are betting on the meme coin to rally.
In addition, funding rates also point to a strengthening outlook. CoinGlass’ OI-weighted funding rate data for Dogecoin flipped positive on August 28 and read 0.0045% on Tuesday. This positive rate indicates longs are paying shorts and signals a bullish sentiment.
Some signs of concern
CryptoQuant’s summary data shows mildly cautious signs. DOGE’s futures markets show large whale orders; however, it also shows sell-side dominance. In addition, spot markets show heating conditions while other metrics remain neutral, highlighting a mildly bearish, cautious sentiment bias among traders.
Dogecoin technical outlook: The 200-day caps the upside
Dogecoin trades around $0.090 on Tuesday and holds a modest bullish bias as it trades above the 50-day and 100-day EMAs at roughly $0.080 and $0.082, while still capped by the 200-day EMA near $0.094. The Relative Strength Index (RSI) is around 61, suggesting firm but not overextended upside momentum, and a slightly positive Moving Average Convergence Divergence (MACD) reading hints that buying pressure is regaining the upper hand after the recent consolidation.
On the topside, immediate resistance sits at the 200-day EMA around $0.094, with a bigger hurdle at the horizontal barrier near $0.102.
On the downside, initial support comes at the nearby horizontal level around $0.088, ahead of the clustered 100-day and 50-day EMAs between $0.082 and $0.080. At the same time, a deeper pullback would expose the next notable floor near $0.070.
(The technical analysis of this story was written with the help of an AI tool.Know more.)
Manish Chhetri is a crypto specialist with over four years of experience in the cryptocurrency industry.
Source: www.fxstreet.com