Dogecoin on-chain metrics signal a potential turning point once the crypto market stabilizes
|- Dogecoin price hovers around $0.168 on Wednesday after bouncing off its 200-week EMA last week.
- Santiment’s data shows that DOGE utility and whale wallets are rising, hinting at a potential rally ahead.
- A weekly candlestick close below $0.136 would invalidate the bullish thesis.
Dogecoin (DOGE) price hovers around $0.168 on Wednesday after bouncing off its 200-week Exponential Moving Average (EMA) last week. Santiment’s data shows that DOGE’s utility and whale wallets are rising, hinting at a potential rally for the dog-themed memecoin.
On-chain data shows potential breakout ahead
Like most meme coins, Dogecoin has been hammered during the 2-month crypto-wide retracement phase. Despite this correction, Santiment data shows that wallets holding at least 1 million DOGE tokens have been rising since the start of February and have risen 1.24%. Moreover, active addresses are also at 4-month highs, reaching over 150,000 addresses. This rise in holders’ wallets and utility indicates a potential breakout on the horizon for the dog-themed memecoin.
Dogecoin on-chain metric chart. Source: Santiment
Dogecoin technical outlook: Bulls aim for $0.22 mark if 200-week EMA support holds
Dogecoin price retested and found support around its 200-week EMA at $0.136 last week. As of Wednesday, DOGE continues to trade above its 200-week EMA, hovering around $0.168.
If the 200-week EMA continues to hold and DOGE closes above the weekly resistance of $0.181, it could extend the rally to retest its next resistance level at $0.220.
The weekly chart’s Relative Strength Index (RSI) turns flat below its neutral level of 50, indicating an easing of bearish momentum and opening the door to a rebound.
DOGE/USDT weekly chart
However, suppose DOGE fails to find support around the 200-week EMA and closes below it. In that case, the bullish thesis will be invalidated, leading to a decline to retest its next weekly support level at $0.078.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.