DOGE Shows Signs of Potential Breakout: Analyst

Crypto analyst and trader Ali Martinez (known on the X social media platform as @ali_charts) has published an X post dedicated to the original meme coin DOGE – one of the first several coins ever launched in the market after Bitcoin.

Dogecoin was created as a parody on Bitcoin, and based on its code, it also runs on the proof-of-work consensus algorithm and is mined simultaneously with Litecoin.

Ali Martinez believes that DOGE is currently in a tight zone and has the potential to stage an upward breakthrough.

"Dogecoin is navigating in a tight zone"

Ali tweeted that Dogecoin is currently in a tight zone, trading between two crucial supply walls on the chart. The first one is a support wall, where 200,000 wallets are holding a whopping 28.6 billion DOGE. The second is a resistance wall – here a massive 124,000 wallets are holding 26.95 billion Dogecoin.

The support wall is bigger in length than the resistant one and this, the analyst says, indicates that there may be a potential for an upward breakout of DOGE. Once the meme coin goes past the $0.076 level, the next price mark, "a significant hurdle," per the expert, will be $0.084, and traders should watch the level once DOGE reaches it. In his analytical breakdown, Ali referred to data shared by the IntoTheBlock on-chain analytics company.

#Dogecoin is navigating a tight zone, sandwiched by two crucial supply walls.📉 Support Wall: Spanning $0.072-$0.073, with 200K addresses holding 28.6B $DOGE. 📈 Resistance Wall: Ranging from $0.074-$0.076, where 124K addresses hold 26.95B #DOGE.Note that support outstrips… pic.twitter.com/O5FRIJ1SIl

— Ali (@ali_charts) November 8, 2023

Whales buy 265.8 million DOGE on Robinhood

According to several X posts recently published by the Whale Alert blockchain sleuth, over the past three days, astounding movements of Dogecoin have been noticed between anonymous wallets and the popular investment platform Robinhood which, allows investing and trading both traditional stocks and cryptocurrencies.

Robinhood has its own crypto wallet that enables traders to hold their Dogecoin and transfer it to third-party wallets from Robinhood if need be.

As for the transfers, Whale Alert noticed four big transactions that carried slightly more than half a billion DOGE.

Three transactions, performed on Nov. 6 and Nov. 7, moved a total of 265.8 million Dogecoin from Robinhood; this may suggest that the owners of these wallets purchased these meme coins there or simply decided to withdraw part of the DOGE that had been held there.

Also, one massive transfer took 250,000,000 DOGE to Robinhood on Nov. 7, a likely sale of a quarter of a billion of these popular meme coins.

🚨 250,000,000 #DOGE (18,943,433 USD) transferred from unknown wallet to #Robinhoodhttps://t.co/1fVE6apBtd

— Whale Alert (@whale_alert) November 7, 2023

As of this writing, Dogecoin is exchanging hands at $0.0745 after a 2.6% drop within the last 24 hours. That was preceded by the 14.6% surge DOGE saw in the period between Nov. 3 and Nov. 7, reaching a local high of $0.0764 on the Binance exchange.