- Dogecoin rose 5% after support at $0.1183.
- The whale activity and social volume coincided with the recent volatility.
Dogecoin [DOGE] has experienced exceptional strength in light of recent market volatility.
After dropping 5% in the last 24 hours to the critical support level, Dogecoin witnessed a 5% decline to the current price. This price action has caught the attention of investors, and rightly so.
At the time of writing, DOGE was testing a crucial support level at $0.1183. The bears and bulls fought at this key level. A breakdown below this support level could pave the way for further price declines.
However, if the bulls win the battle, we could see a reversal and potential upside.
At the moment of writing, CoinMarketCaps data priced Dogecoin at $0.1233. The market capitalization increased by 4.91% to 17.86 billion over the past 24 hours, while trading volume increased by 10.54% to $863 million.
This provides more bullish market insights.
Source: TradingView
On the charts, the stochastic RSI (12.74) indicated an oversold zone. This was a sign that the level could be a critical demand that could form the basis for a price reversal.
Furthermore, the MACD also underlined the waning bearish pressure in the market.
Whale activity, social volume spike
AMBCrypto analyzed Santiment’s social volume and whale activity data to evaluate the direction of the market. The data indicated an interesting correlation between the two.
There were several spikes in both volume and whale activity, coinciding with recent price volatility. This implied that large investors may be influencing market sentiment and price action.
Source: Santiment
Coinglass’ liquidation heatmap painted a picture of market tension. In particular, there were clusters of liquidations around key price levels. This suggested that investors were caught off guard by the sudden price move.
This volatility can lead to additional liquidation in either market direction.
Source: Coinglass
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What’s next for Dogecoin?
The Dogecoin price is at a crucial point. If DOGE can maintain its position above the $0.1183 resistance level, it could pave the way for further price gains.
However, a collapse below this resistance level could create bearish momentum towards potential lower support zones.
