Dogecoin’s Recent Surge: A Crypto Trading Expert’s Take

Dogecoin just shot up over 50%, and I can’t help but wonder if we’re witnessing the start of something bigger. I mean, the meme coin is back in action, but before we get too carried away, let’s break down some of the indicators and market conditions at play here.

Technical Indicators Pointing Upwards

First off, DOGE hit a high of $0.42200 on November 12, marking its highest point in almost three years. Looking at the charts, it’s clear that there’s been a series of higher highs and higher lows since October 3. The MACD indicator shows some pretty tall green bars, which usually means momentum is on your side. Then there’s the Awesome Oscillator—it’s also giving a thumbs up to the current trend.

But here’s where it gets interesting: DOGE has flipped past some key resistance levels. It took out the October 2021 peak of $0.340000 and even tackled the August 2021 high of $0.351700. The next hurdle? The June 2021 peak at $0.448340, which is only about 9% away from where we are now.

However, caution is warranted because the Relative Strength Index (RSI) is sitting pretty high at 92 right now—indicating that DOGE might be “overbought” and due for a pullback.

Derivatives Market Shows Bullish Sentiment

Another thing to note is that open interest in Dogecoin derivatives has skyrocketed to $2.86 billion—an increase of about 38% in just one day! Most traders seem to be leaning towards a bullish stance given that long/short ratios are above 1 across major exchanges like Binance and OKX.

Open interest going up usually supports the idea that prices will continue rising, so this data point adds another layer to my analysis.

Whale Activity: Accumulation or Distribution?

Then there’s whale activity to consider. Large wallet transactions spiked on November 6 and again on November 10—right around when price peaks occurred as well. An uptick in whale transactions can either indicate accumulation or distribution; it’s essential to know which one it is.

Active address counts also saw spikes during those dates, suggesting more participation from smaller holders alongside big whales moving their stacks around.

Bitcoin’s Influence: A Double-Edged Sword

Now let’s talk about Bitcoin for a second because it seems like Dogecoin’s fate might be tied to BTC’s trajectory at this moment. Bitcoin recently hit an all-time high of nearly $90K, and while that’s great for crypto as a whole, it makes me wonder if a correction could drag down altcoins like DOGE along with it.

Interestingly enough, there’s an extremely high correlation between Bitcoin and Dogecoin right now—with a coefficient sitting at about.94! That means when Bitcoin moves up or down sharply, chances are Dogecoin will follow suit.

Final Thoughts: Proceed with Caution

So what’s my takeaway here? While there are plenty of indicators suggesting further upside for Dogecoin—especially with Bitcoin being so bullish—it might be wise to wait for a better entry point given how overextended DOGE seems right now based on RSI alone.

As always in crypto trading—especially when using day crypto trading strategies—it’s crucial to do your own research (DYOR) and not just follow what everyone else seems to be doing blindly!