Dogecoin price eyes $0.10 target, on-chain metrics support bullish outlook for DOGE price
|- Dogecoin price could extend its gains after hitting $0.077 for the first time in nearly three months.
- DOGE token’s on-chain metrics support thesis for price rally in the meme coin as more token holders edge closer to profitability.
- The meme coin notes higher on-chain activity and creation of new wallets, driving demand among traders.
Dogecoin, one of the largest meme coins in the crypto ecosystem, is on track to possibly extend its gains further this week. The meme coin crossed the barrier at $0.077, making a comeback to this level for the first time since August 2023.
According to on-chain metrics for DOGE, there is scope for further gains and the outlook on the asset continues to remain bullish.
Also read: Dogecoin Price Forecast: Why this week is important for DOGE holders
These on-chain metrics support a bullish thesis for DOGE price
Global In/Out of the Money around price
An on-chain indicator from data intelligence platform, IntoTheBlock, In/Out of the Money around price (IOMAP) reveals the percentage of DOGE wallet addresses that are currently sitting on unrealized profits or losses. At the current DOGE price of $0.0759:
- 50.29% wallets are “In the Money,” meaning they are sitting on unrealized profits (their average cost of acquisition is lower than the current DOGE price.)
- 26.40% wallets are “Out of the Money,” meaning they are sitting on unrealized losses
Typically, as the percentage of wallets “In the Money” climbs, we are nearing a local top in DOGE price. As seen in the chart below, there is a support wall at $0.0710 to $0.0732 with its 221.06K addresses holding 29.21 billion DOGE. Support outstrips resistance at $0.0766 to $0.0817 with its 154.16K addresses holding 4.79 billion DOGE, therefore the asset has the potential for an upward breakout. It is important to note that traders need to be cautious as the asset approaches what is likely a local top.
If Dogecoin price slices through the $0.0817 level, the next key hurdle is at $0.0137.
Global In/Out of the Money DOGE
Daily Active Addresses, New addresses: Both metrics climbed in November
Between November 1 and 8, Daily Active Addresses and New Addresses climbed 22.36% and 55.00% respectively, as seen in the chart below. Rises in these metrics supports a bullish thesis, as it indicates rising demand for DOGE among market participants.
Daily active addresses and new addresses in DOGE
DOGE Futures Open Interest
pen Interest in DOGE climbed to levels previously seen in August 2023, alongside the increase in price, based on data from Coinglass. Rising Open Interest implies there is an increase in capital inflows to the asset, supporting a bullish outlook.
DOGE Futures Open Interest and price
The $0.1000 target becomes relevant for DOGE as the meme coin recently crossed the $0.0770 level. In addition, it marks the next key resistance for Dogecoin price in its uptrend.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.