The price of Dogecoin is winding in the daily time range, suggesting an explosive trend.If DOGE follows Ripple's footsteps, it is expected to achieve a 50% to 60% increase
- The price of Dogecoin is winding in the daily time range, suggesting an explosive trend.
- If DOGE follows Ripple's footsteps, it is expected to achieve a 50% to 60% increase.
- If the meme coin fails to remain above the support level of $0.0705, the bullish outlook will be invalidated.
Since November 22, the price of Dogecoin has been in a narrow range of fluctuations. However, the recent recovery above the low point in the range looks promising and suggests an explosive trend next week.
Dogecoin price is ready for breakthrough
The price of Dogecoin forms a range, expanding from 0.0705 dollars to 0.0952 dollars in November 2022. For about five months, DOGE has been trading within the above range, but has recently deviated from the low point of the range and quickly recovered, indicating that there may be a bullish trend waiting to occur.
At the beginning of March, the price of Dogecoin experienced a large-scale sell-off, pushing it down to below $0.0705, but rebounded above the above level a few days later, showing the strong defense of buyers.
In addition, the Relative strength index (RSI) is trying to break through the midpoint to establish a bullish mechanism. The Amazing Oscillation Index (AO) also shows the power of the sprouts, as it is attempting to break through the zero line. Both momentum indicators indicate that bulls are clearly striving to control the situation, which increases the credibility of the breakthrough argument.
Since there are clear bullish signs on the technical side, let's take a look at the important levels that investors need to closely monitor.
- Before the bullish trend begins, seller liquidity may clear the low point of the range at $0.0705.
- The upward trend will face significant selling pressure at the midpoint of the range of $0.0828.
- Clearing this blockade will mark the area as $0.0952 for DOGE to open the road. This move will bring nearly 35% returns to investors.
- Considering the careful integration that has been ongoing since November 2022, an upward trend of $0.0952 is not the end of the bullish scenario. Therefore, market participants can expect that the price of Dogecoin will reach the level of 0.114 US dollars, which is the midpoint of the 55% slump seen from November 1-9, 2022. This move will constitute a 62% rebound for investors.
- Continuing to maintain a 62% pullback at $0.125 will result in a 77% gain for DOE holders.
goodnewsYes, if DOE clears the barrier of $0.0839, it will face clear skies of up to $0.0952.
To further support the bullish development of Dogecoin, it is a 24-hour active address. Since March 18th, this on chain indicator has been creating higher highs and has increased from 120000 addresses to 130000 in less than two weeks.
The surge in active addresses indicates investors' interest in the current price level of DOGE, indicating potential overweight.
In addition, the supply distribution map shows that addresses holding between 100 million and 1 billion DOGE tokens have been growing rapidly. From late December 2022 to mid March 2023, the number of these addresses skyrocketed from 17.50% to 20.95%.
The sharp rise of high net worth investors indicates that the price of Dogecoin may be bullish.
Although all the technical and chain signs indicate that the price prospect of Dogecoin is bullish, if the bulls fail to control the situation, investors need to develop a backup plan. Breaking below the range low of $0.0705 and then flipping this key support level into a resistance level will invalidate the bullish argument.
This development may cause DOGE to plummet by 15% and reach a support level of $0.0597.
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