- A second high investment in DOGE was observed between early February and mid April which would suggest turning accumulation into breakout phase.
- DOGE’s sentiment indicators had positive readings, indicating crowd sentiment at 0.26 and smart money sentiment at 0.55 and investing growing bullish demands.
- DOGE demonstrated that net outflows had been recent, only recently stabilizing according to its spot flow data, which may indicate a drop in the selling pressure and a transition to accumulation.
Dogecoin (DOGE) had shown some signals of a price reversal as it was ascending during the broader market correction as its price chart appeared in daily basis. A clear cup pattern had formed, with a smooth, rounded bottom that developed between early February and mid-April.
Dogecoin Shows Potential Price Reversal
It was this well thought of classic bullish reversal pattern that would have indicated that Dogecoin could have been shifting from a phase of accumulation to breakout. Near the top of the cup, the price moved sideways and right above the falling trendline resistance represented a key point of an upward break out.
Source: CoinMarketCap
The 9-day EMA, placed at $0.15756, closely matched the current price around $0.15547, and served as dynamic support. In the past, when the price is consolidated and subsequently held above this moving average, it has often led to stronger price move.
The 50-day SMA, located at $0.17473, acted as the main resistance. If the cup pattern was confirmed, a move above this level would have gone a long way to validating the cup pattern and usher Dogecoin into a more bullish territory.
On the other hand, if DOGE failed to break above both the trendline and the 50 SMA, it might have dropped back toward $0.14000, the base of the cup. There was possibility of a breakout with steady trading volume and tighter price range but if it was rejected, it may have halted any upward momentum.
As a result, traders might have waited for a clear breakout and retest above $0.174 to enter long positions, especially since the potential reward outweighed the risk at current levels.
DOGE Fear and Index read Bullish.
At the same time, Dogecoin’s sentiment readings showed a slightly optimistic outlook. The crowd sentiment score stood at 0.26, and the smart money sentiment score reached 0.55, both of which were positive.
These values suggested that both general traders and experienced investors had growing confidence in DOGE. Such a reading above zero in the past normally meant price rising prices, particularly when the chart was displaying bullish setups.
Source: X
This matched the earlier cup pattern, with the price still near $0.15547 and supported by the 9 EMA at $0.15756. In case positive sentiment remained, DOGE could have risen above the trendline and 50 SMA at the $0. 17473 level, hence initiating a bull move. If that happened, the price could have risen past $0.174, shifting from accumulation to expansion.
However, if the sentiment weakened and the price failed to move higher, DOGE might have fallen back toward $0.14000, delaying the bullish outlook. Because of this, many traders might have chosen to wait for a confirmed breakout and a strong retest before making any major moves.
Dogecoin’s Spot Flow Shows Market Rebound
DOGE’s spot market flow also supported a potential rebound. The outflows had recently started to level off, with large outflows which could blow past -$200 million and, on occasion, last from late November to mid April had been paused.
These outflows matched a drop in price from above $0.50 to around $0.15, and likely represented a phase when many traders were selling. But this recent stabilization in flow took its selling pressure down which might be a return to accumulation.
Source: CoinGlass
As DOGE held near $0.155, and outflows slowed, the market might have been preparing for a change in direction. However, if there was a rise in inflows again, Dogecoin’s could have benefited from enough strength to try to test important levels of resistance such as $0.174, the 50 SMA, and the upper trendline. Breaking above these might have led to further price growth.
On the flip side, if strong outflows returned, Dogecoin’s might have dropped back toward $0.140, testing the base of the cup again. Therefore, DOGE’s inflow and outflow pattern acted as a signal of market behavior. A steady return of inflows might have supported the idea of an upward price move, strengthening the overall bullish case.
