Top 3 Reasons Why Dogecoin Price May Witness a Major Rally Ahead

Key Insights:

• Dogecoin price is copying 2022, a setup that sparked a 145% rally in one month
• DOGE whales accumulated more than 430 million DOGE over the past week.
• Binance and OKX long-short ratios show traders remain heavily positioned toward longs.

Dogecoin price is trading near $0.07 after an intraday advance stalled around $0.0705. DOGE opened near $0.0697 before moving above $0.0700. It later reached an intraday high near $0.07046 before giving back part of the move.

DOGE price now sits between $0.0695 support and $0.0705 resistance. Meanwhile, Dogecoin carries a market capitalization of approximately $10.87 billion.

Notably, crypto analyst Ali Martinez highlighted three factors that could shape Dogecoin’s next larger move. His analysis focuses on a monthly technical signal, Dogecoin whale accumulation, and a major on-chain resistance level. Meanwhile, derivatives data shows traders remain heavily positioned toward long exposure across major exchanges.

However, any price targets or projections mentioned here are based on technical indicators and current market conditions, not guaranteed outcomes. Cryptocurrency markets can change rapidly, and actual prices may differ significantly from these estimates.

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

TD Signal and Whale Buying Support Dogecoin Price Setup

Ali Martinez wrote on X that the Tom DeMark Sequential produced a monthly Dogecoin buy signal last month. The signal appeared alongside an inverted hammer on the monthly chart.

Notably, Martinez compared the current formation with Dogecoin’s August 2022 setup. DOGE formed an inverted hammer and TD buy signal during that period. A doji candle then followed the pattern.

That sequence preceded a 145% monthly rally in 2022, according to Martinez. The current chart now shows another inverted hammer and TD buy signal. Additionally, a doji candle is developing on the monthly timeframe.

The second factor centers on large-holder activity. Martinez reported that whales accumulated more than 430 million DOGE during the past week. The purchases increased holdings among large Dogecoin addresses while the technical setup developed.

Dogecoin Price Faces $0.0813 Resistance

The third factor involves a major on-chain resistance zone at $0.0813. Martinez identified this level through Dogecoin’s UTXO Realized Price Distribution data.

More than 30 billion DOGE previously changed hands around $0.0813. So, that price represents a big pile of past trades.

Martinez identified $0.177 as the next URPD resistance after $0.0813. However, Dogecoin would first need a sustained close above the lower resistance level.

Before that level comes into focus, short-term price action remains compressed. DOGE price currently trades between $0.0695 support and approximately $0.0705 resistance. The intraday move above $0.0700 lost steam with a high of $0.07046.

Liquidations Shift Toward Long DOGE Traders

Meanwhile, derivatives data from CoinGlass shows that liquidation pressure changed during the latest trading period. DOGE recorded $187.81K in total liquidations over 24 hours.

The total short liquidations accounted for $115.38K, while the total long liquidations accounted for $72.43K. However, more recent times have seen the pressure shift to long traders.

Over 12 hours, the total amount liquidated fell to $7.33K. Longs accounted for $7.28K, and shorts were just $52.37.

Similarly, all $2.42K of four-hour liquidations came from long positions. The one-hour period recorded another $1.54K in long liquidations and no short liquidations.

Despite those recent liquidations, exchange positioning remains tilted toward longs. Binance’s DOGE/USDT account long-short ratio stands at 3.08.

Meanwhile, the OKX DOGE account ratio reaches 5.47. Binance top traders show a 3.7574 ratio when measured by accounts.

Finally, Binance top traders hold a 3.1459 long-short ratio by positions. Those readings show long accounts currently outnumber shorts across the reported trading groups.

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