As selling pressure eases, Dogecoin may experience more bullish trends.
Several on-chain metrics support a potential rebound to the $0.5 level.
On Monday, the price of Dogecoin (DOGE) broke through the key resistance level of $0.40, rebounding from a 15% pullback. This week's on-chain trading flow indicates that due to a 95% decrease in selling pressure, DOGE is moving towards $0.50.
DOGE recovers $0.4
Dogecoin recently made headlines in the cryptocurrency market with a significant price increase, reigniting interest in
memecoins. Notably, the price of Dogecoin surged to a three-year high of $0.44
USD. Many attributed this spike to Trump confirming Elon Musk's role in the Department of Government Efficiency (DOGE).
Traders began locking in profits on November 12, after the coin had a monthly increase of 185%. As a result, Dogecoin fell 15% to $0.37 before the market opened on Tuesday. However, this week's on-chain trading flow for Dogecoin indicates that selling pressure has significantly decreased, which may lead to another round of price increases.
According to data from Santiment, as traders began to lock in profits, the consumed age metric peaked at 1 trillion DOGE on November 12. The consumed age metric shows the number of tokens that changed addresses on a specific date multiplied by the time since they last moved. It is a proxy for monitoring peaks and troughs in the selling activity of long-term holders.
The surge of DOGE on November 12 stagnated within 24 hours after the spike, as a large influx of long-held tokens entered the market, overshadowing short-term demand. However, this week selling pressure has eased, as on Monday, the value of Age Consumed fell by 95% to 49 billion DOGE.
In short, the decline of the consumed age indicator suggests that the number of long-held tokens currently being traded is decreasing. This indicates that DOGE is likely to rise further for two reasons. First, a surge in DOGE demand could trigger a rapid price increase, with the number of dormant tokens entering circulation decreasing.
Moreover, despite the stock price achieving a triple-digit rise in November, long-term traders remain unwilling to sell, which may encourage potential investors to maintain a bullish sentiment.
Technical analysis of Dogecoin
Additionally, the volume-weighted average price (VWAP) shows that DOGE has good bullish momentum at $0.395. Since DOGE spiked by 0.11% in 24 hours, this value is below the current market price of $0.399.
This indicates an increase in short-term demand, as most buyers are now willing to pay more to complete orders rather than wait for the market. VWAP considers price and trading volume to help traders determine the fair value of an asset.
According to short-term price forecasts, the Donchian Channel indicator shows that DOGE faces initial resistance at $0.44, consistent with last week's high. A breakout above $0.44 will confirm the continuation of the upward trend, with the next milestone potentially being $0.50.
Given that DOGE has consistently maintained above the VWAP, this situation aligns with an accumulation phase. Conversely, the Donchian Channel emphasizes that the key support level is the midpoint around $0.29. Therefore, any drop below this level could lead to a correction towards the lower channel limit of $0.20, thereby refuting bullish claims.
As selling pressure eases, Dogecoin may experience more bullish trends.
Several on-chain metrics support a potential rebound to the $0.5 level.
On Monday, the price of Dogecoin (DOGE) broke through the key resistance level of $0.40, rebounding from a 15% pullback. This week's on-chain trading flow indicates that due to a 95% decrease in selling pressure, DOGE is moving towards $0.50.
DOGE recovers $0.4
Dogecoin recently made headlines in the cryptocurrency market with a significant price increase, reigniting interest in memecoins. Notably, the price of Dogecoin surged to a three-year high of $0.44 on November 14. Many attributed this spike to Trump confirming Elon Musk's role in the Department of Government Efficiency (DOGE).
Traders began locking in profits on November 12, after the coin had a monthly increase of 185%. As a result, Dogecoin fell 15% to $0.37 before the market opened on Tuesday. However, this week's on-chain trading flow for Dogecoin indicates that selling pressure has significantly decreased, which may lead to another round of price increases.
According to data from Santiment, as traders began to lock in profits, the consumed age metric peaked at 1 trillion DOGE on November 12. The consumed age metric shows the number of tokens that changed addresses on a specific date multiplied by the time since they last moved. It is a proxy for monitoring peaks and troughs in the selling activity of long-term holders.
The surge of DOGE on November 12 stagnated within 24 hours after the spike, as a large influx of long-held tokens entered the market, overshadowing short-term demand. However, this week selling pressure has eased, as on Monday, the value of Age Consumed fell by 95% to 49 billion DOGE.
In short, the decline of the consumed age indicator suggests that the number of long-held tokens currently being traded is decreasing. This indicates that DOGE is likely to rise further for two reasons. First, a surge in DOGE demand could trigger a rapid price increase, with the number of dormant tokens entering circulation decreasing.
Moreover, despite the stock price achieving a triple-digit rise in November, long-term traders remain unwilling to sell, which may encourage potential investors to maintain a bullish sentiment.
Technical analysis of Dogecoin
Additionally, the volume-weighted average price (VWAP) shows that DOGE has good bullish momentum at $0.395. Since DOGE spiked by 0.11% in 24 hours, this value is below the current market price of $0.399.
This indicates an increase in short-term demand, as most buyers are now willing to pay more to complete orders rather than wait for the market. VWAP considers price and trading volume to help traders determine the fair value of an asset.
According to short-term price forecasts, the Donchian Channel indicator shows that DOGE faces initial resistance at $0.44, consistent with last week's high. A breakout above $0.44 will confirm the continuation of the upward trend, with the next milestone potentially being $0.50.
Given that DOGE has consistently maintained above the VWAP, this situation aligns with an accumulation phase. Conversely, the Donchian Channel emphasizes that the key support level is the midpoint around $0.29. Therefore, any drop below this level could lead to a correction towards the lower channel limit of $0.20, thereby refuting bullish claims.
