Dogecoin’s recent surge suggests further upside potential if $0.35 support can be held
Dogecoin has captured a lot of attention in the cryptocurrency space in recent weeks, with its value surging significantly, ultimately reaching a yearly high of $0.43. The memecoin’s value has exploded by 234.72%, demonstrating its volatility and appeal to both retail and institutional investors. However, the journey has not been smooth sailing, as DOGE has fallen 9.67% on the daily chart, raising concerns about a potential correction.
Keep an eye on Dogecoin’s performance, especially the $0.35 support level. Market sentiment remains cautiously optimistic, with many believing that the uptrend has the potential to continue as long as this level holds. As Ali Martinez points out, the formation of a bullish flag suggests that Dogecoin has the potential to reach highs of $0.56 if the upward momentum continues.
While the forecast is encouraging, it is crucial to study other technical indicators in order to fully understand Dogecoin’s market position. According to data from Santiment, the NVT ratio, which measures the ratio of network value to transaction volume, has dropped significantly from 582.06 to 111.03 over the past month. This trend indicates that actual usage and adoption of Dogecoin is increasing, contrary to the speculative patterns commonly seen in the market.
In addition to the decline in the NVT ratio, Dogecoin’s MVRV ratio, a measure of market value to its actual value, has surged to 62.82%. Such growth generally indicates strong bullish sentiment, indicating that long-term holders are optimistic about future price increases. The positive correlation of these indicators further emphasizes the belief that the recent price correction may only mean a temporary pullback rather than a reversal of the overall uptrend.
Given the current situation, market dynamics appear to be in Dogecoin’s favor as it looks to rise further, and a successful reclaiming of the $0.44 level could pave the way for Dogecoin to encounter the next resistance level around $0.48. It is also crucial to keep a close eye on macroeconomic factors and Bitcoin’s performance as they tend to have a significant impact on the movement of altcoins.
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