• 28 May, 2024
News

Dogecoin’s Bullish Surge: Aiming for a 10% Rise Amid Positive On-Chain Signals

Dogecoin, the popular meme cryptocurrency, has recently exhibited a notable uptrend. This positive trajectory began around October 18, aligning with broader market trends, and took off from a support level of $0.05600. Following a vigorous surge, the currency faced a setback as profit-takers emerged, leading to a temporary retreat. Nevertheless, Dogecoin enthusiasts remain optimistic as efforts to recover lost ground are underway.

The possibility of Dogecoin’s value increasing by 10% is gaining traction, especially considering the resistance it faces within the $0.07600 to $0.08000 range. Despite a slight decrease in buying pressure and the emerging bearish presence, the digital currency’s proponents are not backing down. The trading volume has also been on the rise, indicating a renewed interest in Dogecoin among investors. Over the past 24 hours, trading volume has increased by over 11%, reaching a total of $749 million.

This upward trend could extend in an optimistic scenario, allowing Dogecoin to surpass the $0.08500 mark. This would set the stage for the currency to challenge the $0.09000 level, which holds psychological significance among investors. However, the DOGE market is looking promising in the near term, with the bullish sentiment being echoed across multiple on-chain indicators.

A closer look at Dogecoin’s on-chain metrics provides a deeper understanding of this bullish sentiment. There’s been a noticeable increase in the daily active addresses, indicating a surge in unique or new transactions. This uptick in user engagement, coupled with an influx of fresh capital as evidenced by the growth in Tether (USDT) market capitalization and active stablecoin deposits, creates a conducive environment for Dogecoin’s growth.

Moreover, the total open interest in Dogecoin, measured in USD, is also rising. This increase mirrors the heightened interest and engagement within the Dogecoin community. Additionally, a significant uptick in whale transactions, particularly those moving over $1 million and $100,000 worth of Dogecoin, further cements the bullish outlook.

On-chain data aggregator IntoTheBlock’s In/Out of the Money Around Price (IOMAP) metric, offers another layer of insight. It revealed that Dogecoin has stronger support at lower prices, suggesting a solid foundation for its potential ascent. Notably, the absence of major supply barriers indicates a clear path for DOGE to realize its upside potential, further solidifying its position as a leading meme cryptocurrency by market capitalization.

Over the past month, Dogecoin has recorded impressive gains of over 35%, outperforming major cryptocurrencies such as Bitcoin, Ethereum, and XRP in terms of price appreciation. However, in today’s market, DOGE has seen a slight correction, currently trading at around $0.07315, with a 24-hour decrease of 2.83. Despite this temporary dip, experts remain bullish on Dogecoin’s prospects as it continues to challenge established resistance levels.

DOGE/USD 1-day price chart, Source: TradingView

The daily technical indicators for Dogecoin indicate a neutral market sentiment, with a slight incline towards bullishness. The Relative Strength Index (RSI) has hit a neutral level at 60.19, implying room for further growth. Similarly, the Moving Average Convergence Divergence (MACD) indicator also suggests a bullish bias in the near term. The current  MACD line is above the signal line, supporting a positive trend for DOGE. However, most moving averages move in a neutral direction, signaling a potential consolidation before any further movement.

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