Dogecoin: Can THIS bullish pattern help DOGE hit $0.42?

• On-chain metrics revealed that DOGE has witnessed a significant 360% jump in its large transaction volume.
• Exchanges witnessed a significant outflow of $20.65 million worth of DOGE.

After experiencing a notable price decline in the past few days, Dogecoin [DOGE] appears poised for recovery.

This bullish reversal signal has gained significant attention from crypto enthusiasts, leading to a surge in participation over the past 24 hours.

40% jump in large transaction volume

Data from the on-chain analytics firm IntoTheBlock revealed that DOGE has witnessed a significant 40% jump in its large transaction volume over the past 24 hours.

This substantial increase suggests that the participation of crypto whales or institutions primarily drives the surge.

Additionally, on-chain analytics firm Coinglass revealed consistent outflows of DOGE from exchanges worldwide since its price decline. In the past 24 hours, exchanges recorded a significant outflow of $20.65 million worth of DOGE.

Combining these on-chain metrics, it appears that bulls are back to support the memecoin. DOGE has reached the crucial price reversal zone of $0.30, a level with a history of significant price rallies.

Dogecoin’s technical analysis and price action 

According to AMBCrypto’s technical analysis, following the recent price decline, DOGE appears to be forming a bullish double-bottom pattern on the daily timeframe.

So far, the memecoin has successfully formed the first bottom and is currently at the second bottom.

Based on recent price action, if DOGE holds above the $0.30 level, there is a strong possibility it could soar by 30% to reach $0.42 in the near future.

However, despite a massive price decline of over 28% in the past 10 days, DOGE has managed to stay above the Exponential Moving Average (EMA) on the daily timeframe, indicating that the memecoin remains in an uptrend.

Current price momentum and major liquidation zone

Looking at the bullish outlook, the major liquidation areas are near $0.31. Traders holding long positions have accumulated $47.21 million worth of long positions.

Meanwhile, short sellers hold short positions worth $19.28 million at the $0.335 level.

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However, these levels will be liquidated if market sentiment shifts and the price reaches these levels. At press time, DOGE was trading near $0.324 after experiencing a price decline of 2.55% in the past 24 hours.

During the same period, its trading volume dropped by 20%, indicating lower participation from traders and investors compared to the previous day.