Leading cryptocurrency analyst Ali Martinez spotlighted a sharp spike in Dogecoin’s (CRYPTO: DOGE) on-chain activity on Saturday, suggesting increased volatility ahead.
A Breakout In The Works?
In an X post, Martinez highlighted that active addresses have surged to nearly 50,000 since the start of July, referencing data from on-chain analytics firm Glassnode.
An active address is any unique wallet address that participates in at least one on-chain transaction within a given time period.
“Something is brewing,” the analyst said, signaling growing usage and interest.
Interestingly, Martinez had spotted a “buy signal” on the TD Sequential indicator just the day before, with a caption, “Things are about to go wild.”
Buy Or Sell?
The Moving Average Convergence Divergence indicator, which compares the 12-period and the 26-period exponential moving averages, flashed a “Buy” signal for DOGE, according to TradingView.
To the contrary, the Bull Bear Power indicator, which measures the strength of buyers and sellers, flashed a “Sell” signal. The Relative Strength Index hovered in the “Neutral” territory.
Whales Increase Long Exposure
Interest in DOGE from derivatives traders also strengthened. Long positions among Binance’s top traders—those in the top 20% by margin balance—rose sharply this week relative to short positions, according to Coinglass.
Additionally, DOGE’s open interest rose 7.6% over the week to top $1 billion, signaling an influx of new money in the speculative market
Price Action: At the time of writing, DOGE was exchanging hands at $0.07727, down 1.78% over the last 24 hours, according to data from Benzinga Pro. The memecoin has lost 34% of its value year-to-date.
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