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The price of Dogecoin formed an interesting setup that hints at the strength of the bulls and indicates the start of an uptrend. Moreover, on-chain metrics do not signal resistance up to certain significant levels.
Since March 24, Dogecoin price has been trading between the $0.11 and $0.17 barriers. After breaking the $0.11 hurdle almost three weeks ago, DOGE added 20% to retest the $0.17 ceiling.
The failure to overcome this hurdle, coupled with the structure of the cryptocurrency market, led to an eventual pullback to $0.11. As a result, DOGE is stuck trading near the bottom. However, since the April 11th retest, the momentum meme has risen 7% to that current level of $0.139.
Going forward, investors can expect the price of Dogecoin to rise by 17% to reach $0.17. Breaking this barrier is the key to moving the cryptocurrency to $0.20. In general, this run-up will be 35% of the increase.
The uptrend of Dogecoin is supported by the IntoTheBlock Global In/Out of the Money (GIOM) model, which shows that the nearest hurdle is weak. The DOGE price may run into some issues in the next cluster, which extends from $0.15 to $0.20. Here, the roughly 335,000 addresses that bought 11 billion DOGE were out of the money (Out of the Money).
Thus, a move into this range is likely to lead to a pullback due to selling pressure from underwater investors rushing to break even.
On the other hand, a daily candle close below $0.133 would invalidate Dogecoin’s bullish trend, turning said barrier into a resistance level. In this case, DOGE could experience a 10% crash to retest the $0.11 support level.
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