Dogecoin Approaches Key Resistance as Whales Take Profits, Traders Eye $0.10 Breakout

Dogecoin Approaches Key Resistance as Whales Take Profits, Traders Eye $0.10 Breakout

Dogecoin’s price is at a pivotal juncture on the daily chart as it nears a significant resistance zone. Meanwhile, large investors, or “whales,” appear to be locking in profits, possibly due to uncertainty about whether DOGE can break through this critical level. On the other hand, traders remain hopeful that Dogecoin will surpass the $0.10 mark and continue to climb. During the New York trading session, DOGE’s price hovered around $0.1067, marking a 0.8% gain over the past 24 hours.

Spot Traders Fuel Dogecoin’s Price Surge

Data from Santiment reveals a gradual increase in whale transactions from August 21, peaking on August 22 before slightly pulling back. During this period, DOGE’s price was on an upward trajectory, suggesting that whales might have been taking profits as the price rose.

According to IntoTheBlock, large-holder netflows have dropped by 194% over the past week. At the same time, Dogecoin’s exchange reserves have increased by $179 million, indicating that whales may have been cautiously offloading their holdings throughout the week.

Moreover, the total DOGE supply in profit has reached its highest point for the month, which could explain why whales decided to take profits at the current price levels.

Coinglass data shows that spot traders played a more significant role than futures traders in driving the current DOGE uptrend. The Dogecoin funding rate decreased from 0.01% on August 21 to 0.0057% on August 23, while the price continued to rise. This suggests that although futures traders are long on DOGE, spot traders are the primary drivers of the recent price increase.

DOGE Price Outlook: $0.10 in Focus

Dogecoin has broken out of a falling wedge pattern and is now trading above it, indicating a potential shift towards an upward trend.

If the price continues to rise, it is likely to face resistance around $0.1095. A successful break above this level could signal the start of a more significant upward move, with the next major target at $0.1274.

The positive Chaikin Money Flow (CMF) suggests strong buying pressure in the market, supporting a bullish outlook. DOGE is currently attempting to break above the 200-day EMA, a move that would confirm a shift from a bearish to a bullish trend. Consistently trading above this moving average is typically considered a strong bullish signal.

Should Dogecoin manage to maintain its position above the 200-day EMA with increased trading volume, it could confirm a longer-term bullish trend with targets above $0.1274.

However, if DOGE fails to break above the 200-day EMA, the price may retreat below the falling wedge pattern, possibly dropping to $0.1000 or even lower to $0.095, which would invalidate the bullish scenario.