Can Dogecoin [DOGE] Catch Up to Shiba Inu [SHIB]'s Rally? Q3 Support Level Could Be Key Resistance

Can Dogecoin [DOGE] Catch Up to Shiba Inu [SHIB]'s Rally? Q3 Support Level Could Be Key ResistanceDogecoin [DOGE] appears to be chasing the explosive rally led by Shiba Inu [SHIB] on Thursday. While SHIB topped the weekly chart with a 36% surge, DOGE only gained 15% during the same period

Can Dogecoin [DOGE] Catch Up to Shiba Inu [SHIB]'s Rally? Q3 Support Level Could Be Key Resistance

Dogecoin [DOGE] appears to be chasing the explosive rally led by Shiba Inu [SHIB] on Thursday. While SHIB topped the weekly chart with a 36% surge, DOGE only gained 15% during the same period. However, theres still potential for DOGE to achieve a 33% upswing and effectively catch up to SHIB. Yet, theres a hurdle that needs to be cleared for the rally to continue.

Q3 Support Level of $0.12 Becomes Crucial Resistance

As of writing, DOGE is retesting its Q2 support level of $0.12 on the daily chart. It has been trading below this level since the end of July. While the memecoin didnt surge when it regained support in mid-July, doing so now could set its sights on $0.16. Such a rise to $0.16 could potentially offer DOGE bulls a 33% upside.

However, the 200-day moving average (MA) of $0.13 seems like a key obstacle. A strong break above the moving average could accelerate DOGEs climb to $0.16. Rising volume (OBV) and RSI suggest strong buying pressure. This could fuel DOGEs attempt to reclaim its Q2 support. However, a dip below the $0.12 level would invalidate the bullish outlook.

Futures Market Shows Strength, But Potential Risks Remain

That said, DOGE futures market also appears strong, with a significant increase in open interest (OI) and a large amount of short positions liquidated. About $5 million worth of short positions were liquidated in the past 24 hours alone. However, the recent rise to $0.12 has also put about 75% of DOGE holders in unrealized profit. This calls for holders to be cautious in taking profits at the $0.12 resistance level. Such a move could derail the recovery.

Miners Maintain Stable Coin Holdings, Providing More Upside for DOGE

Conversely, miners, one of the key supply factors for DOGE, have been holding onto their mined coins since August. In fact, theyve been increasing their holdings since July, evidenced by the surge in miner-held supply. Reduced miner supply pressure could provide more upside for DOGE.

Conclusion

While DOGE shows some short-term growth potential, breaking through and establishing above the Q3 support level of $0.12 is key for its continued upside. Investors need to keep a close eye on the price action and indicators like volume and RSI, and be cautious about market fluctuations. Ultimately, whether DOGE can catch up to SHIBs rally remains to be seen.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investing involves risk, and you should make your own decisions.

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