The price of Dogecoin is exhibiting a coiling pattern, indicating a potential movement towards the goal price of $0.100, which represents an estimated increase of 30% from its current valuation.
Although there exist several positive factors that support the upward movement of DOGE, it is important to acknowledge the presence of a supply barrier inside the price range of $0.076 and $0.080, which poses a significant challenge.
Confirmation of the continuance of the intermediate trend, so avoiding the bearish sentiment, would be established by a break and subsequent closure above the price level of $0.078.
The price surge of Dogecoin (DOGE) that started in mid-October has been noteworthy, propelling the meme currency with the highest market capitalization to heights not seen since August. Nevertheless, the potential for growth is currently at risk as the cryptocurrency encounters a significant obstacle in its supply, which will ultimately determine if DOGE achieves its aim of reaching $0.100 or not.
The upward trajectory of Dogecoin's price is currently facing potential challenges.
The price of Dogecoin (DOGE) is now exhibiting a positive trend, maintaining the upward trajectory that began on October 13th. The probability continues to be in favor of a positive outcome, except for the presence of a supply barrier ranging from $0.076 to $0.080. The present supply zone has a notable prevalence of assertive selling, indicating the potential for a price reversal until the impetus from buyers surpasses the prevailing selling pressure.
If there is a significant increase in purchasing pressure beyond the current levels, it is possible that the price of Dogecoin may enter the supply zone. The confirmation of the continuance of the daily uptrend (intermediate trend) in DOGE would be indicated by a decisive daily candlestick closure above the midline of this order block. If the price of the asset above the resistance level of $0.081 and maintains that position, it would indicate a bullish breakout in the supply zone, perhaps leading to further upward movement.
In an optimistic scenario, the price of Dogecoin has the potential to surpass the $0.085 threshold, followed by a potential move towards the psychological level of $0.090. The proposed action would result in an increase of 20% compared to the existing levels. In instances with significant ambition, the jump has the potential to extend towards the projected aim of $0.100, resulting in a 30% increase from the present value.
The Relative Strength Index (RSI) provides support for the current perspective, as its value of 63 indicates that there is still potential for further upward movement before the possibility of an overbought condition in DOGE becomes relevant.
Furthermore, it is worth noting that the Awesome Oscillator (AO) continues to maintain a predominantly positive position, exhibiting a consistent sequence of green histogram bars. This provides further evidence in support of the potential for increased positive outcomes.
The on-chain measurements of Dogecoin provide empirical evidence to substantiate a positive and optimistic perspective.
The behavior analytics platform Santiment presents many measures that support a positive mindset. To start, there is a notable rise in the amount of active stablecoin deposits and the market capitalization of Tether (USDT) stablecoin. This indicates an influx of new capital into the DOGE market. This phenomenon is further facilitated by the increasing open interest, as investors demonstrate a heightened inclination to capitalize on the potential gains associated with DOGE.
The prevalence of social dominance is increasing, evidenced by the growing proportion of DOGE mentions on social media platforms dedicated to cryptocurrency discussions, in comparison to a diverse selection of over 50 other cryptocurrencies.
Likewise, there is a discernible inclination among significant stakeholders to demonstrate interest in DOGE. There is an increasing trend in the volume of transactions using DOGE valued between $100,000 and $1,000,000. This development is expected to have a positive impact on the price of Dogecoin.
Significantly, there has been a notable growth in the volume of daily active addresses, indicating the quantity of distinct addresses engaged in daily transactions using DOGE. Given the increased level of audience engagement surrounding the meme cryptocurrency, it is anticipated that there will be a notable degree of volatility, with the likelihood of upward movement being more favorable.
On the other hand, in the event that the supply zone functions as a barrier of resistance, there is a possibility that the price of Dogecoin may decline, perhaps leading to a loss of support provided by the 200-day Exponential Moving Average (EMA) at a value of $0.068. In an extreme situation, it is possible for the decline to surpass the support level of $0.067 and subsequently evaluate the intersection of the 100-day and 50-day Exponential Moving Averages (EMA) at $0.066. The proposed action would indicate a decrease of 10% from the present values.
