Despite a recent three-day crash, Dogecoin experienced a 7% price increase and shows potential for an uptrend.
On-chain metrics, including rising whale activity and daily active addresses, indicate positive momentum and growing interest, reinforcing the meme cryptocurrency’s position in the market.
The latest to join the altcoin market rally is the world’s largest memecoin i.e. Dogecoin (DOGE) whose price is up by 5.5% in the last 24 hours and is currently trading at $0.0779 with a market cap of $11.05 billion.
After a three-day crash from November 12 to 14, Dogecoin (DOGE) experienced a 7% price increase, finding support at the $0.0722 level. The decline followed a rejection from the critical midline of the supply zone at $0.0786, posing a significant obstacle for DOGE.
Despite the challenging hurdle, DOGE bulls remain in control, fostering optimism for overcoming resistance. The Relative Strength Index, with an upward trajectory, indicates growing momentum, a sentiment supported by the positive territory of the Awesome Oscillator (AO).
To confirm an uptrend, Dogecoin’s price must successfully breach and close above the $0.0786 resistance level, transforming the supply zone from $0.0767 to $0.0803 into a bullish breaker surpassing the $0.0815 resistance. This achievement not only brings the $0.0850 target within reach but also opens opportunities for further upward movement for the dog-themed cryptocurrency.
In the event of another rejection at the $0.0786 resistance level, Dogecoin’s price might experience a downturn, potentially breaching the $0.0722 support level. Under more adverse conditions, it could fall below the 25- and 50-day Exponential Moving Averages (EMA) at $0.0716 and $0.0685, respectively, to test the $0.0675 support level. In a more severe scenario, it could even reach the 100-day EMA at $0.0673. Such a movement would signify a 12% decline, undermining the current bullish perspective.
Dogecoin On-chain Metrics
The bullish outlook for Dogecoin is substantiated by various on-chain metrics analyzed by the behavior analytics platform Santiment. Notably, whale activity is on the rise, evident in the increasing number of DOGE transfers exceeding $100,000 USD and $1 million USD. This uptrend contributes to the positive case for an upward movement in price.
Courtesy: Santiment
Furthermore, the bullish narrative gains strength from the growing count of daily active addresses, suggesting continued engagement from new, unique addresses in DOGE transactions. This points towards an expanding user base and increased interaction within the Dogecoin network. The alignment of this data with a surge in Tether (USDT) stablecoin and an uptick in active stablecoin deposits signifies that fresh capital is entering the market, indicating new participants acquiring the asset and potentially driving the price of Dogecoin higher.
Courtesy: Santiment
To summarize, the present market conditions and on-chain dynamics of Dogecoin suggest a favorable setting for a potential price upswing. Supported by robust technical and on-chain factors, the meme cryptocurrency appears poised for a notable uptrend.
However, investors should stay vigilant for any shifts in market sentiment that may impact its trajectory. In the evolving landscape of the cryptocurrency market, Dogecoin maintains its position as a significant player in the meme coin space, backed by increasing investor interest and bullish market indicators.
In other news, Astrobotic intends to dispatch a tangible Dogecoin to the moon through the DHL Moonbox aboard ULA’s Vulcan Centaur Rocket on December 23, 2023. This mission, financed by the Dogecoin community in 2015, exemplifies a collaborative endeavor!
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