Dogecoin, the popular meme-based cryptocurrency, experienced a 5% price decline after encountering resistance at the $0.07862 mark. However, current on-chain metrics indicate a possible 10% rebound in value. The cryptocurrency has been on an upward trajectory since October 18, with its price climbing from a support level of $0.05694.
Technical analyses, including the Relative Strength Index (RSI) and Awesome Oscillator (AO), along with an increase in daily active addresses and a rise in both Tether (USDT) market capitalization and active stablecoin deposits, are signaling a bullish trend for Dogecoin. These positive signs suggest that Dogecoin could soon test the $0.08153 resistance level. In an optimistic scenario, it might even surpass the $0.08500 mark and aim for the $0.09000 psychological threshold.
The IOMAP (In/Out of the Money Around Price) metric reveals strong support at lower price levels, with significant clusters of investors who have previously bought DOGE ranging between $0.070518 and $0.074543. This robust support may help sustain Dogecoin's price above these levels.
Despite these bullish indicators, there is still potential for increased selling pressure that could push Dogecoin's price down to test the $0.07000 psychological level or even drop to the $0.05694 support floor if it falls below the crucial $0.06756 support level.
However, a growing volume of total open interest in USD for Dogecoin futures and a surge in large transactions by whales—addresses moving more than $1 million and $100,000 USD worth of DOGE—point to a continued upward trend. Moreover, around 377,620 addresses collectively holding nearly 58.02 billion DOGE could provide substantial buying pressure to counteract any downward movements. The number of unique or new addresses involved in daily DOGE transactions is also increasing, which is typically a sign of growing network activity and interest in the asset.
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