Dogecoin Pumps 8% And Its Next Move 'Could Be Huge,' Touts Trader

Dogecoin DOGE/USD has rebounded following a positive CPI data release, fuelling hopes for a continuation of the rally higher.

What Happened: Prominent crypto trader Kevin shared his analysis of Dogecoin, highlighting a bullish pattern emerging on the four-hour chart. Kevin noted that Dogecoin has re-entered a larger symmetrical triangle, which he deems a positive indicator. He emphasized the importance of Dogecoin moving back above key moving averages.

Kevin also mentioned significant liquidity at the $0.175 level, suggesting a potential test of this area in the near future. The liquidity at this level could attract significant trading activity, potentially leading to increased volatility.

Another trader, Trader Tardigrade, noted the historical parallel channels trading pattern of Dogecoin.

$Doge follows these Parallel Channels 🔥
Since #dogecoin has left the lower support line of the current channel. Next move could be HUGE🚀 pic.twitter.com/fzRZdnntcY

— Trader Tardigrade (@TATrader_Alan) June 12, 2024

Over the past 24 hours, DOGE is up 8.5%, trading at $0.1495.

Also Read: Why Are Dogecoin, Shiba Inu And Other Meme Coins Struggling?

Why It Matters: Kevin's observation of the symmetrical triangle pattern suggests a potential bullish trend, which could influence trading strategies. The mention of key moving averages is crucial as these levels often act as support or resistance, impacting price movements. Traders may look to these averages for entry or exit points.

BitInfoCharts data noted that 14 addresses holding 48% of the entire supply of Dogecoin. One single address holds 21.4%.

IntoTheBlock data noted a 20.9% increase in large transaction volume and an 8.6% increase in daily active addresses. Exchanges netflows increased by 151.4%. Transactions greater than $100,000 increased from 274 transactions on June 10 to 435 transactions to June 11.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Dogecoin, Shiba Inu Continue To Drive High Trading Volume, Report Finds

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