Dogecoin’s recent increase in onchain activity did not translate into price gains, as whale flows into exchanges created sell pressure. The memecoin’s price was pushed toward its month-long range lows at $0.0887 amidst broader market despair, leaving bulls with a tough challenge to spark a rally.
Dogecoin [DOGE] witnessed an increase in onchain activity recently. Both the Daily Transfer Volume and Transaction Count numbers were elevated, but this failed to translate into notable price gains. This was likely because DOGE was going through a distribution phase.
It was reported that whale flows into exchanges translated into immediate sell pressure. This pushed prices further toward the month-long range lows at $0.0887. At the same time, the market sentiment was once more in extreme despair.
Worries of escalation in the US-Iran conflict and a worsening energy crisis have already sent Asian stock markets reeling, according to a social media post. Bitcoin faced profit-taking pressure and has slumped below the $70k psychological support.
The range extended from $0.0887 to $0.104, with the mid-point at $0.0965. The $0.088 area has had added importance as a support level since the first week of February. The RSI on the 4-hour chart was at 35, indicating bearish momentum was prevalent.
On the other hand, the CMF was at +0.01. It had climbed higher within the past week to signal easing capital outflows as the price approached a key local support. It is unclear if this is enough for the bulls to initiate a move toward the range highs.
A Liquidation Heatmap provided by CoinGlass showed that the $0.084-$0.088 zone was a nearby cluster of long liquidations. They have built up over the past three weeks and could pull prices lower. Such a liquidity sweep, combined with the range lows as support, could give DOGE a platform for recovery.
