- Dogecoin price retraces after running into immense overhead pressure at $0.1600.
- This intensifying overhead pressure might curtail DOGE’s anticipated move to $1.0000.
- Positive pressure behind Dogecoin’s rally will likely sabotage calls for a retracement to $0.1000.
Dogecoin price is exchanging hands at $0.1312 after slowing down its uptrend marginally below $0.1600. The largest meme coin and now the eighth largest cryptocurrency boasts $17 billion in market capitalization after attracting $130 billion in trading volume over the last 24 hours.
DOGE’s fading momentum comes amid a crypto relief rally that saw Bitcoin price trade at $21,302 on Saturday. If Dogecoin does not clear resistance at $0.1600, investors can lock in profits as discussed by one of our analysts and focus on other trending assets like BTC, ETH and BNB.
What’s next for Dogecoin price?
It has yet to be determined if Dogecoin price has enough liquidity and momentum to break the stubborn resistance at $0.1600. This overhead pressure might drive DOGE to validate a potential double-bottom pattern. However, sellers will have to build an overwhelmingly bearish case for such a move.
For now, Dogecoin price trades at $0.1304 and can hold above higher support areas due to the support it is receiving from day traders. According to the On-Balance-Volume (OBV) indicator, more people are backing DOGE’s potentially bullish climb toward $1.000. Approximately $17.76 billion is being exchanged at the moment, with positive pressure accounting for most of the volume.
DOGEUSD 3-day chart
A buy signal from the Moving Average Convergence Divergence (MACD) adds optimism to the bullish outlook in Dogecoin price. Furthermore, the MACD’s uninterrupted northbound move above the mean line reveals that buyers have the upper hand for now.
A daily close above the critical hurdle at $0.1600 could quickly pave the way for DOGE to begin the subsequent phase of its journey to $1.0000. Dogecoin’s downside appears to be holding onto solid support between $1101 and $1141, as highlighted by IntoTheBlock in the IOMAP on-chain model. Approximately 9,500 addresses purchased 9.25 billion DOGE in that range.
Dogecoin IOMAP model
Due to the massive buying pressure between $0.1101 and $0.1141, Dogecoin will likely keep the uptrend intact. In sudden short-term retracements, declines might not stretch beyond the same range. Although short positions might be profitable, traders must exercise caution because rebounds could wreck their positions.
Dogecoin’s network activity has been on its toes since Elon Musk acquired Twitter. Investor interest in DOGE peaked, bolstered by Musk’s hint at integrating Dogecoin into Twitter. For this reason, on-chain data by Santiment exhibits a seemingly unstoppable uptick in the protocol’s daily active addresses.
Dogecoin Active Addresses
From the chart above, 104,000 addresses transacted on the network on November 4, almost touching August’s peak at 116,000. The fundamental support Dogecoin is getting from its holders remains crucial for its uptrend to $1.0000.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin: Holds $105K mark as MicroStrategy adds 11,000 BTC, Trump pardons Silk Road creator Ulbricht
Bitcoin price trades around $105,000 on Wednesday after rebounding from the $100K support level the previous day. Michael Salyor’s MicroStrategy announced on Tuesday that it has acquired 11,000 BTC worth $1.1 billion, and President Donald Trump pardoned Silk Road creator Ross Ulbricht.
World Liberty Financial adds $47 million of ETH and wBTC each to celebrate Trump’s inauguration
Donald Trump-backed DeFi platform World Liberty Financial (WLFI) added $47 million of wrapped Bitcoin (wBTC) and Ethereum (ETH) each to celebrate Trump’s inauguration as the 47th President of the United States on Monday.
Top 5 made in USA altcoins tackle uncertainty on Trump’s return: XRP, Solana, Cardano, Chainlink, Avalanche
Crypto market capitalization of altcoins developed in the U.S. crossed $544.15 billion on Wednesday, January 22. Among cryptocurrencies trending in the U.S., XRP, Solana, Cardano, Chainlink, and Avalanche have gained in the past 24 hours, per CoinGecko data.
President Donald Trump plans $500 billion in AI infrastructure with OpenAI, SoftBank and Oracle
President Donald Trump announced a “Stargate” project for $500 billion in investment to advance the US AI infrastructure. The project will deploy an initial investment of $100 billion, scaling up to $500 billion, to establish advanced data centers and infrastructure in Texas.
Bitcoin: BTC rallies above $102,000 ahead of Trump’s inauguration
BTC's price continues to trade in the green, trading above $102,000 at the time of writing on Friday after rallying more than 7% this week. Recent US macroeconomic data released this week supported the rise of risky assets like BTC.
Trusted Broker Reviews for Smarter Trading
VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.