The price of Dogecoin has gained further in the past 24 hours as Bitcoin surpassed the psychological barrier of $60,000. The market is back in the green, but the Bitcoin Fear & Greed Index shows that most markets remain cautious. This could be because most crypto assets, including Dogecoin, are forming what appears to be a rising wedge, a bearish reversal pattern. Nonetheless, there is hope for the Dogecoin price in the short term.
Dogecoin Price Tests Major Resistance Levels
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The Chaikin Money Flow (CMF) is neutral at 0.01, indicating balanced money flows but not showing strong buying pressure to support a sustained rise.
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Dogecoin price prediction shows that the recent price increase is accompanied by a decline in volume, which generally indicates a weakening momentum. This divergence could indicate that the current uptrend may not be sustainable.
In addition, Dogecoin Core was recently upgraded to version 1.14.8, which aims to improve stability, efficiency, and security, which may have a positive impact on prices in the long run.
On-chain indicators show short-term upside
Data from on-chain analytics firm Coinalyze shows that DOGE open interest has increased by 7.48% in the past 24 hours. Coupled with the price increase, this suggests that the short-term uptrend may continue.
Additionally, according to data from IntoTheBlock, the number of large transactions involving Dogecoin has increased over the past day, suggesting that whales are accumulating Dogecoin. Whales are important players in any ecosystem as their large liquidity contributes greatly to price movements.
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The recent rise in Dogecoin prices has seen 73% of holders take profits. This is a bullish indicator because it sends a message to outside investors that buying Dogecoin is profitable. The more buyers there are, the higher the price.
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Due to Dogecoin’s price profitability, 67% of investors are long-term holders. This is a bullish indicator that can inspire confidence in new investors, attracting them to buy Dogecoin and pushing the price higher.
