Dogecoin is certainly in rally as crypto market figures show. The cryptocurrency has seen a significant market surge amid broader consolidation, with the price up 7.46% over the past seven days.
Although DOGE price was recently pushed back today by some resistance level near $0.087, it has since rebounded again to $0.082. At the time of writing, DOGE is trading at $0.084, a 2.4% increase from this support level. This indicates that the bulls are not ready to give up their buying momentum.
According to a recent post by crypto analyst Rekt Capital on social media, DOGE has finally confirmed the breakdown of a descending channel pattern. On-chain signals also indicate a huge increase in interest and trading volume, indicating that DOGE could soon rise.
– Rekt Capital (@rektcapital) November 17, 2023
Metrics signal imminent breakout
The current state of the cryptocurrency market appears to be one of general consolidation when viewed through the prism of the price action of the many different cryptocurrencies tracked by Coinmarketcap.
Cryptocurrency market capitalizations appear to be running out of steam after four consecutive weeks of rallying. However, Dogecoin market value has increased over the past week, bucking the trend of most other cryptocurrencies in the top 10 in terms of market size, all of which showed a decline in their market capitalization over the week last.
Dogecoin finally broke out of its narrow trading range in the weekly candle chart, surging over 45% over the past month. Several catalysts contributed to this impending breakout, among them increased trading activity. Another catalyst is the announcement of Astrobotic’s project to send physical Dogecoin token to the moon in December.
The movements of whales also contributed largely to this. According to on-chain data from crypto analytics platform Santiment, the cumulative balance of wallets holding 10 million to 1 billion DOGE increased from 44.63 billion DOGE tokens on November 1 to a cumulative balance of 47.38 billion DOGE. DOGE tokens on November 17. As a result, these large holders increased their holdings by 2.75 billion DOGE, worth around $231 million at the current crypto price.
How high can the price of Dogecoin go?
Technical indicators for Dogecoin currently look quite optimistic. The short 10-day moving average has been rising steadily above the longer 21-day moving average since a bullish cross on October 23 last month, indicating that the bulls still have major control over the market. Continued bullish momentum could see the crypto break various price resistances, the first being the $0.87 level.
Doge is trading at $0.08440 at the time of writing. The next obstacle is to break above $0.09 and then move towards $0.1. According to IntoTheBlock’s Global In/Out Of The Money metric, approximately 1.58 million addresses are still waiting for DOGE to surpass its minimum purchase price of $0.858 before making a profit.
DOGE price drops to $0.082 | Source: DOGEUSD on Tradingview.com
Featured image from Analytics Insight, chart from Tradingview.com