Is Dogecoin rally-ready?
Dogecoin pricing is poised to rebound around the descending trendline breakthrough level.
DOGE has its greatest daily active addresses since early April.
A daily candlestick closing below $0.098 would disprove bullishness.
Dogecoin climbs on Monday after retesting support last week. DOGE's daily active addresses, an on-chain indicator, have reached their highest level since early April. This jump signals Dogecoin's price will climb due to more blockchain use.
Dogecoin price may rise.
After breaking over a declining trendline (made by connecting various highs from May) on September 24, dogecoin gained nearly 18% in four days. DOGE has retraced all its gains since September 29, when it encountered resistance around $0.128. On Thursday, it established support around $0.102, the previous trendline breakout level, and gained 6.6% till Sunday. It's trading higher at $0.114 on Monday.
DOGE might rise 12% to its daily resistance level of $0.128 if the trendline breakout level at $0.102 holds.
Relative Strength Index (RSI) has risen over 50 on the daily chart, suggesting bullish momentum. In addition, the Moving Average Convergence Divergence (MACD) is poised to crossover above the signal line (yellow line), indicating bullish momentum. However, traders should be careful until this crossing is complete.
In/Out of the Money Around Price (IOMAP) from IntoTheBlock encourages bullishness. Close to 32,770 addresses held 35.48 billion DOGE coins at $0.112. These addresses purchased Dogecoin between $0.110 and $0.114, a critical support zone.
Technical analysis suggests that the $0.110 level is a major reversal level since it matches IOMAP results.
Santiment's Daily Active Addresses index, which analyzes network activity, also favors Dogecoin. Blockchain use increases as the measure rises, whereas dropping addresses indicate lesser demand.
DOGE's Daily Active Addresses rose from 57,848 on September 30 to 81,689 on October 1, the highest since early April.
#DOGE $DOGE #BTCReboundsAfterFOMC
