• 15 June, 2024
News

Technical and On-Chain Data Suggest Dogecoin’s Potential Bullish Trend

According to recent reports, Dogecoin (DOGE), a cryptocurrency that began as an absurdity, is now laughing its way to potentially significant profits. According to Crypto Tony, a crypto market analyst, the coin points to an oncoming rise, with the meme coin aiming for an ambitious target of $0.0850.

The dog-themed digital asset has caught traders’ attention as it gears to challenge a crucial resistance level at $0.0786. This comes after Dogecoin’s commendable bounce back from its support at $0.0722, witnessed between November 12 and November 14. The recovery is supported by the upward trajectory of the Relative Strength Index and a positive reading on the Awesome Oscillator, indicating its legitimacy. These technical indicators have historically been reliable signs of a momentum shift in the asset’s favor.

Source: Crypto Tony

The current technical setup presents an exciting scenario for Dogecoin enthusiasts and investors. A decisive close above the $0.0786 mark could flip the supply zone from $0.0767 to $0.0803 into a strong support level. This bullish breaker could pave the way for Dogecoin to hit and potentially surpass its $0.0850 target.

Further bolstering the bullish outlook is data from Santiment, a behavior analytics platform, which reveals a spike in whale transactions—often a harbinger of significant price movements. Additionally, a surge in daily active addresses and Tether (USDT) inflows indicates a growing crowd interest and fresh capital injection into Dogecoin. These on-chain metrics are not just numbers; they embody the heightened interaction and the infusion of new energy into the Dogecoin market.

Investing in Dogecoin, like any other investment, carries inherent risks. Should the coin’s value drop below the crucial $0.0786 mark, it might slip under its current support. In such a scenario, the next levels to watch would be the 25-day and 50-day Exponential Moving Averages, which stand at $0.0716 and $0.0685, respectively. A further decline could see it approaching the 100-day EMA at $0.0673. This represents a potential decrease of approximately 12% from its present value. The cryptocurrency is trading at $0.078 during this press, according to CoinGecko.

This potential scenario leads us to a pivotal question whether Dogecoin’s community and new investors push it beyond resistance or if the market forces pull it back to test lower support. The answer lies in the balance between the bullish technical signals and the ever-present possibility of market volatility. 

As investors watch the charts and on-chain metrics, the coming days will be crucial for Dogecoin’s short-term trajectory. Whether it will bark up to new highs or whimper back to lower supports remains to be seen, but one thing is clear—Dogecoin’s journey continues to captivate the crypto community.

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