- Dogecoin price coils up on the daily timeframe, hinting at an explosive move.
- If DOGE follows in Ripple’s footsteps, a 50% to 60% upswing is on the cards.
- Invalidation of the bullish outlook will occur if the meme coin fails to hold above the $0.0705 support floor.
Dogecoin price has been in a tight range bound movement since November 22. However, the recent recovery above the range low looks promising and hints at an explosive move for next week.
Also read: What Ripple holders can expect next week as XRP price coils up for explosive move to this level
Dogecoin price primed for a breakout
Dogecoin price formed a range, extending from $0.0705 to $0.0952 in November 2022. For roughly five months, DOGE has been trading in the aforementioned range, but the recent deviation below the range low, followed by a quick recovery, suggests that there could be a bullish move waiting to happen.
Early March, Dogecoin price experienced a massive sell-off that pushed it below the $0.0705 level, but recovered above the said level a few days later, showing a strong defense from buyers.
Furthermore, the Relative Strength Index (RSI) is attempting to cross above the midpoint to establish a bullish regime. Budding strength can also be seen with the Awesome Oscillator (AO), which is trying to go above the zero-line. Both momentum indicators suggest that there is a clear effort from the bulls to take control, which adds credence to the breakout thesis.
Now that technicals are showing clear signs of an incoming bullish move, let us take a look at the important levels investors need to pay close attention to.
- There might be a sweep of the range low at $0.0705 for sell-side liquidity before a bullish move kick-starts.
- The uptrend will face massive selling pressure at the midpoint of the range at $0.0828.
- Clearing this blockade will open the path for DOGE to tag the range high at $0.0952. This move would constitute nearly 35% gains for investors.
- An upward move to $0.0952 is not the end of the bullish scenario, considering the elaborate consolidation that has been in play since November 2022. Therefore, market participants can expect Dogecoin price to reach the $0.114 level, which is the midpoint of the 55% crash seen between November 1 and 9, 2022. This move would constitute a 62% rally for investors.
- A continuation to the 62% retracement level at $0.125 would net DOGE holders a 77% gain.
DOGE/USDT 1-day chart
Looking at the transaction data from IntoTheBlock reveals an interesting cluster of “underwater” investors who may pose the biggest threat to DOGE’s bullish outlook. Between $0.0771 and $0.0906, roughly 306.6k addresses purchased a whopping 32.16 billion DOGE at an average price of $0.0839.
These investors are currently “Out of the Money,” and if Dogecoin price rises up to their average purchase level, the bulls could face headwinds from investors trying to sell their holdings at break even.
The good news is that, if DOGE clears the $0.0839 hurdle, it will face clear skies up to $0.0952.
DOGE GIOM
Further supporting the bullish development for Dogecoin is the 24-hour Active Addresses. This on-chain metric has been producing higher highs since March 18 and has gone from 120,000 addresses to 130,000 in under two weeks.
This spike in active addresses suggests that investors are interested in DOGE at the current price levels, suggesting a potential accumulation.
DOGE 24-hour Active Addresses
Additionally, the Supply Distribution chart shows that addresses holding between 100 million and 1 billion DOGE tokens have been increasing at a rapid rate. Between late December 2022 and mid-March 2023, the number of these addresses spiked from 17.50% to 20.95%.
Such a massive uptick in high net worth investors predicts the possibility of an incoming bullish move for Dogecoin price.
DOGE Supply Distribution
While all signs, technical and on-chain, point to a bullish outlook for Dogecoin price, investors need to have a backup plan, should the bulls fail to take control. A breakdown of the range low at $0.0705 followed by a flip of this key support level into a resistance level would invalidate the bullish thesis.
Such a development could see DOGE crash 15% and tag the $0.0597 support level.
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
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.