Dogecoin’s price action is rangebound for yet another day. The asset traded at $0.06064, a local high, and dropped back to the previous rangebound level. It has dropped over 4.66% this week. When compared to the price action this month, it is up by 5.4% based on price data from CoinMarketCap. After trading rangebound for nearly a month, Dogecoin still has no clear trend emerging, barring its response to memes and commentary from influencers like Musk on Crypto Twitter.
DOGE price chart || Source: CoinGecko
Since Binance markets are the ones that contribute the largest share to DOGE’s trading volume and currently, DOGE is trading at a 0.5% premium on Binance. The 24-hour volume has dropped by 24% however this signals that DOGE may be leaving exchanges and hitting storage and wallets. This could reduce the liquidity temporarily, allowing for a bullish narrative to build up.
This comes at a time when DeFi tokens and large-capitalization altcoins are rebounding from monthly lows. Despite being perceived largely as a meme coin, Musk is rooting for its listing on Coinbase. There have been several updates on the asset’s open code on Github. Since it is being traded across exchanges, in high volumes for booking real profits, the technical development and update process has started. This would imply a long-term bullish outlook based on fundamentals. However, based on on-chain analysis from IntoTheBlock, the sentiment among retail traders on exchanges is currently bearish
At the current price level, 86% HODLers are profitable. However, there are many who bought DOGE at its peak and are waiting for enough liquidity and price action above the $0.06 price level. What’s interesting is that $5.5 Billion worth of transactions on the DOGE coin network were large value transactions, and DOGE whales have made these movements in the past week.
Since the coin is relatively low on value, most opportunities to book real profits rely on high volume trades and whale movements are few. Additionally, whale movements do not imply that a price rally is on its way, however, the rangebound price action may be the accumulation phase for DOGE while the volatility increases and the price increases in the following weeks. Based on on-chain analysis traders’ outlook on DOGE is bearish, and based on trends this may be the accumulation phase before a new listing or further technical updates.