The price of dog coins is rising, with a target of $0.100, which is about 30% higher than the current level
- The price of dog coins is rising, with a target of $0.100, which is about 30% higher than the current level.
- Although there is sufficient bullish fundamentals to drive DOGE, the supply barrier between $0.076 and $0.080 remains a barrier.
- Breaking through and closing above $0.078 will confirm the continuation of the intermediate trend, avoiding bearish energy.
The price breakthrough of Dogcoin (DOGE) since mid October has been very eye-catching, bringing the largest meme coin by market value to the level of its last test in August. However, due to the critical supply barriers faced by cryptocurrencies, their upward potential is now threatened, which will determine whether DOE can achieve its target of $0.100.
The rising trend of dog coin prices is under threat
The price of dog currency (DOGE) is bullish, maintaining the upward trend that began around October 13th. Apart from the supply barrier extending from $0.076 to $0.080, there is still a high possibility of an increase. The characteristic of this supply area is aggressive selling, which means that unless buyer momentum overwhelms selling pressure, prices may reverse here.
Purchasing pressure exceeding the current level may lead to the price of dog coins entering the supply area. DOGE recorded a decisive daily candlestick closing price above the midpoint of the order block, which will confirm the continuation of the daily upward trend (intermediate trend). Breaking through and closing above the resistance level of $0.081 will make the supply area a bullish breakthrough point, clearing the way for further northward movement.
In a highly bullish situation, the price of dog coins may break through the level of $0.085 and then rise to the psychological level of $0.090. This move will increase by 20% compared to the current level. Under ambitious circumstances, this leap may be extrapolated to the predicted target of $0.100, which is a 30% increase from current prices.
The Relative Strength Index (RSI) supports the outlook, with its position at 63 indicating that there is still greater upside potential before considering overbought DOGE to take effect.
In addition, the momentum oscillation index (AO) remains effectively in the positive range and has a series of stable green histogram bars. This supports more upside potential.
Dog coin on chain indicators support bullish prospects
The behavioral analysis platform Santiment displays multiple indicators that are conducive to bullish prospects. Firstly, the active stable currency deposits and the market value of Tether (USDT) stable currencies are increasing. This indicates that new funds are flowing into the DOGE market. As investors' desire to profit from DOGE increases, the increase in open positions further enhances this.
The dominance of social media is also on the rise, and compared to more than 50 other counterfeit currencies, the proportion of DOGE mentioned on cryptocurrency related social media continues to rise.
Similarly, major holders have shown interest in DOGE. The number of transactions with a value between $100000 and $1000000 is also increasing. The price of this pair of dog coins is bullish.
Most importantly, the daily active address volume (i.e. the number of unique addresses involved in daily DOGE transactions) has increased. With the increasing interaction among people around meme cryptocurrencies, it is expected that there will be fluctuations and there is a high possibility of an increase.
On the contrary, if the supply area remains at a resistance level, the price of dog currency may fall, potentially losing the support provided by the 200 day moving average (EMA) of $0.068. In the worst-case scenario, before testing the convergence point of the 100 day moving average and the 50 day moving average of $0.066, a sharp drop may fall below the support level of $0.067. This move means a 10% decrease from the current level.
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