Dogecoin Flashes Major Rebound Signal As Exchange Flows Flip, Analyst Warns
Overview
Dogecoin has recently shown a significant shift in its exchange dynamics, as fresh on-chain data indicates a positive change in its net supply on centralized exchanges. This development is noteworthy, as it has historically signaled potential rebounds in the cryptocurrency’s price.
Exchange Dynamics Shift
Crypto analyst Ali Martinez highlighted a chart from Glassnode that illustrates the latest changes in Dogecoin’s exchange net position. The chart reveals that Dogecoin’s net supply on exchanges has turned positive, suggesting that more DOGE is moving to exchanges than leaving. This shift is marked by green bars on the histogram, which denote net inflows, contrasting with red bars that indicate net outflows.
Historically, similar transitions from net outflows to net inflows have been associated with sharp price increases. The chart tracks monthly exchange inflows and outflows alongside Dogecoin’s price, demonstrating that during periods of significant inflows, the price has previously surged. For instance, during a period around the fourth quarter of a specified year, net inflows rose impressively, correlating with a price increase from a lower range to a local peak.
However, the exchange dynamics have not remained consistently positive. Following the peak, the histogram shows a mixed structure, alternating between positive and negative readings. This pattern continues with smaller fluctuations in price as Dogecoin oscillates within a defined range.
The most recent data point is particularly significant. It indicates a break in the previous trend, as a tall green bar signifies a return to positive net flows, suggesting a potential for future price rebounds. At this point, the price of Dogecoin is positioned slightly above a specific value on the scale.
Support Levels and Market Structure
In addition to the net supply changes, Martinez presented a second chart detailing the UTXO Realized Price Distribution (URPD) of Dogecoin. This chart reveals that a substantial portion of the DOGE supply last moved around a specific price level, which accounts for a significant percentage of the total measured supply. This price level has been characterized as a major support level for Dogecoin.
The URPD also highlights a “GAP” between certain price ranges, indicating a lack of significant support below a specified threshold. This observation raises concerns about Dogecoin’s price stability, as support could diminish quickly if it falls below this level. The next major demand zone is identified at a lower price point, indicating that traders should be cautious.
A third chart further analyzes Dogecoin’s cost-basis distribution, confirming the presence of two primary holder cohorts at different price bands. This data reinforces the notion that Dogecoin’s market is currently caught between a strong realized floor and a notable cluster of holders at a higher price point.
Impact on the Crypto Market
- The positive shift in Dogecoin’s exchange dynamics could indicate potential price rebounds, attracting trader interest.
- Historical patterns suggest that similar shifts have led to significant price movements in the past.
- The identified support levels and gaps highlight potential risks for Dogecoin’s price stability.
- Market participants may closely monitor the latest flow reversal as a signal for future trading strategies.
- The interplay between exchange flows and price dynamics continues to define Dogecoin’s market structure, influencing trader sentiment.
Updated: 11/20/2025, 1:47:54 AM
