Dogecoin Holds Strong Despite Market Sell Off: Is a 25% Rally Possible?

Dogecoin Maintains Resilience Amidst Market Sell-Off

On January 13, 2025, the cryptocurrency market experienced a significant downturn, with major coins such as Bitcoin, Ethereum, and Solana facing heavy losses. However, Dogecoin (DOGE) has exhibited resilience, holding above the $0.30 support level, offering hope to traders and long-term holders.

Growing Bullish Sentiment

According to data from Coinglass, DOGE has garnered increased attention in the past 24 hours. The Binance DOGE/USDT long-to-short ratio stands at 4.22, indicating that for every short position, there are 4.22 long positions. Additionally, 80.83% of Binance top traders hold long positions, while only 17.17% hold short positions. This overwhelming bullishness suggests that traders anticipate a recovery and upward trajectory for DOGE in the near term.

Increased Trading Volume

Supporting this view is the surge in trading volume. DOGE's 24-hour trading volume increased by 90%, despite a 4.20% price drop during the same period.

Confidence from Long-Term Holders

Apart from active traders, long-term holders also express confidence in DOGE. Recent spot inflow and outflow data reveal that over $45.05 million worth of DOGE has been withdrawn from exchanges. This indicates that investors are moving their assets to private wallets for long-term storage, reducing selling pressure. Historically, such behavior has led to price rallies due to the reduced supply available on exchanges.

Potential 25% Rally

DOGE has reached $0.3247, reigniting speculation of a rally. The $0.30 support level has historically served as a springboard for significant surges, including a 25% increase from this level to $0.40 in the past. Analysts anticipate that with continued trading and strong on-chain indicators, an uptrend is imminent. However, overcoming key resistances at $0.35 and $0.40 will be crucial for a sustained uptrend.

Conclusion

DOGE's resilience amidst the market sell-off is a testament to its strength. A combination of bullish trading sentiment, reduced exchange supply, and historical performance suggests that DOGE could be poised for a potential 25% rally. However, traders should remain cautious of key resistance zones and market volatility before making significant moves.