The price of dog coins fell 5% after being rejected from the midpoint of $0.07862 (the supply barrier extended from $0
- The price of dog coins fell 5% after being rejected from the midpoint of $0.07862 (the supply barrier extended from $0.07677 to $0.08039).
- Driven by bullish on chain indicators and growing buyer motivation, DOGE may climb northward again, recovering 10% of its lost land.
- When the counterfeit currency falls below the support level of 0.06756 US dollars, the bullish outlook will expire.
The price of dog currency (DOGE) has been on an upward trend in the past few weeks, rebounding northward from October 18th, when the market turned around the support level of $0.05694. After a strong rise, profit bookers have taken the lead, and now bulls are trying to recover all lost ground.
Dog coin prices may increase by 10%
Due to the supply barrier extending from $0.07677 to $0.08039, the price of Dogcoin is facing selling pressure. Despite the decrease in purchasing pressure and the presence of bears in the market, the DOGE bulls are still engaged in fierce battles, which may cause this meme cryptocurrency to rebound to 10% above its current level to test the resistance level of $0.08153.
In a highly bullish situation, the price increase of dog coins may exceed the level of $0.08500, and then further increase to test the psychological level of $0.09000.
Both technical indicators and on chain indicators support the bullish argument. Technically speaking, the Relative Strength Index (RSI) is still above the 50 level, indicating strong prices. The awe inspiring oscillator (AO) is aligned in positive areas, indicating that bulls are still at the forefront of the DOGE market. These indicators increase the credibility of bullish arguments.
DOGE/USDT1 daily chart
Dog coin on chain indicators support bullish prospects
From an on-chain perspective, the number of daily active addresses for DOE is increasing, indicating the number of unique or new addresses participating in DOE transactions on a daily basis. With the continuous improvement of crowd interaction level, coupled with the rising market value of Tether (USDT) and the promotion of new capital inflows such as active stable currency deposits, these indicators are conducive to an upward trend.
DOGESantiment: daily active address, USDT market value, active stable currency deposit
In addition, the figure below also shows the continuous increase in the total amount of open US dollar contracts for Dogcoin, indicating an increase in crowd interaction. Combining this with the increasing whale trading of mobile addresses exceeding $1 million and $100000 worth of DOGE, the likelihood of an increase is even greater.
DOGESantiment: Total open positions, whale trading
In addition, the In/Out of the MoneyaroundPrice (IOMAP) indicator of the on chain aggregator IntoTheBlock shows stronger downward support for dog coin prices. More strictly speaking, there are no supply barriers that can prevent the largest meme cryptocurrency by market value from realizing its upward potential.
On the contrary, according to this on chain indicator, there are two main areas of interest between $0.070518 and $0.074543, which are occupied by a large number of investors who have previously purchased DOGE near these price levels. Here, approximately 377620 addresses hold nearly 58.02 billion DOGs. Any effort to lower the price of dog coins will be offset by purchasing pressure from nearly 400000 addresses.
Governor IOMAP
On the other hand, increasing selling pressure may lead to a decrease in the price of dog coins, which may test the psychological level of $0.07000. Going further south, if it falls below and closes below the support level of $0.06756, then the bullish argument is invalid, making the support level of $0.05694 the focus.
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