Dogecoin Price Analysis: DOGE flashes buy signal as buyers make their move

  • DOGE bulls face three strong resistance barriers upfront, as per the IOMAP.
  • Since the beginning of the month, the number of new daily Dogecoin addresses has steadily risen.

Between October 26 and November 3, Dogecoin dropped from $0.0027 to $0.00248. However, it looks like the fortunes are about to change.

Dogecoin to climb up

The TD Sequential index presented a buy signal on DOGE’s 1-day chart with a green-nine candlestick. A spike in buying pressure could lead to a one to four daily candlesticks upswing.

DOGE/USDT daily chart

IntoTheBlock’s In/Out of the Money Around Price (IOMAP) presents multiple bullish targets, but the $0.0026 support must hold for the optimistic outlook to be validated. The buyers have three targets upfront at $0.002665-$0.002736, $0.002736-$0.0028 and $0.002972- $0.003067. Upon breaking past these barriers, DOGE buyers should be able to consolidate their position above $0.003.

DOGE IOMAP

When looking at Dogecoin’s network growth, the bullish thesis holds. Since the beginning of the month, the number of new daily DOGE addresses has steadily risen. Roughly 32,000 addresses were joining the network on a daily basis around November 1. This number surge to 41,700 a day, representing a 30% increase.

The uptrend trend in network growth is a positive sign for price growth in the near future. Usually, a sustained increase in network growth is a leading indicator of rising prices.

DOGE new addresses

It should be kept in mind that this bullish action can only be validated if the $0.0026 support wall holds. The IOMAP shows a lack of strong support below this wall. If the sellers manage to break below $0.0026, they should be able to take the price down to $0.0020.

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