As DOGE approaches the resistance level of $0.16460, breaking this resistance could lead to further price increases.
Dogecoin is nearing a key resistance level; breaking $0.16460 could trigger a bounce towards $0.20.
Overbought signals suggest that DOGE may pull back, while whale activity indicates increased volatility.
Dogecoin [DOGE] surged 16.93% in the past day. This strong trend emerged after the token retested the support level of $0.14080, indicating a solid foundation and pushing it towards the key resistance level of $0.16460.
As of the time of publication, DOGE's price is $0.1654 with a 24-hour trading volume of $4.37 billion. The circulating supply is 150 billion DOGE, and the market cap is $24.24 billion.
As DOGE approaches the resistance level of $0.16460, its closing price is the mid-range target of $0.20745. Breaking this resistance could lead to further price increases.
If DOGE fails to break the level of $0.16460, it may return to the support level of $0.14080.
A larger drop may test the lower support level of $0.12650. The mid-range target is still in sight, but breaking the $0.16460 level is key for further upward movement.
Technical indicators are signaling overbought conditions
Dogecoin's price has broken through the upper Bollinger Band, reflecting strong upward pressure. While this indicates bullish momentum, breaking the upper band may also suggest that the token is overbought.
This increases the likelihood of a short-term pullback or consolidation phase. If DOGE declines, the mid-range of $0.1328 could become a support area.
The MACD shows positive momentum, with both the MACD line and the signal line trending upwards. The growth of the histogram further indicates an increase in buying activity.
As long as the MACD remains positive, the bullish trend remains intact, potentially pushing DOGE higher.
At the time of writing, the RSI reached 75.79, also indicating that DOGE is in the overbought area.
While this may signal a potential short-term adjustment, strong RSI levels are common in a robust upward trend.
If the RSI remains high, DOGE may push towards the next resistance level of $0.18.
DOGE's on-chain metrics
The market value to realized value (MVRV) ratio of DOGE has increased by 4.66% in the past 24 hours, hovering around 1.5. The MVRV ratio measures the profitability of holders.
A higher MVRV usually indicates that more holders are in profit, and when traders lock in profits, this can lead to selling pressure. Historically, when MVRV exceeds 2.0, sell-offs typically increase.
At current levels, MVRV is below its 52-week high of 2.31, indicating further upside potential before significant selling pressure appears.
However, if MVRV continues to rise, the risk of profit-taking increases, which could exert downward pressure on DOGE's price.
Increased whale activity
In the past 24 hours, DOGE's large transaction volume reached 15.5 billion DOGE, setting a record for October.
This increase indicates a growing interest from whales and institutional investors, who often influence price direction. Increased whale activity could indicate accumulation, distribution, or preparation for larger market fluctuations.
Recently, large transaction volume has dropped to 7.52 billion DOGE, making this peak significant.
