• Dogecoin price coils up around the $0.088 support floor, indicating a volatile move is around the corner.
  • Investors can expect DOGE to trigger a 40% upswing to $0.125 if bulls manage to flip the $0.101 hurdle.
  • A daily candlestick close below $0.062 will invalidate the bullish thesis.

Dogecoin price has been consolidating for the last five days, hinting at an explosive move. Since this development is occurring above a stable support level, there is a good chance the resulting breakout will propel DOGE higher.

Dogecoin price to move higher

Dogecoin price rose 45% from $0.065 to $0.095 and flipped above the $0.087 barrier. This development comes after DOGE crashed 50% since May 6. This recovery is likely to continue heading higher but this move will not be an easy one.

Since Dogecoin price is coiling up, a volatile move is what investors can expect. Considering that this range tightening is occurring above a stable support level, the chances of a bullish breakout are higher. 

Beyond a bullish breakout, the DOGE bulls need to slice through the $0.101 hurdle to head higher and retest the $0.125 target. This move would constitute a 40% upswing from the current position at $0.088.

DOGE/USDT 4-hour chart

DOGE/USDT 4-hour chart

Supporting this bullish outlook for Dogecoin price is the extremely oversold state of the 365-day Market Value to Realized Value (MVRV).

This on-chain metric is used to determine the average profit/loss of investors that purchased DOGE over the past year. Based on Santiment’s research, a value below -10% indicates that short-term holders are at a loss and are less likely to sell. 

More often than not, this is where long-term holders accumulate. Hence, any move below -15% is termed an “opportunity zone.” 

For DOGE, the 365-day MVRV is hovering at -58%, which is much lower than the March 2020 value at -38%. This value represents that a majority of the DOGE holders are underwater and are unlikely to sell. It also indicates that the dog-themed crypto is in a good accumulation position.

DOGE 365-day MVRV

DOGE 365-day MVRV

A daily candlestick close below $0.062 will invalidate the bullish thesis for Dogecoin price by producing lower low. In such a case, DOGE could crash 25% to retest the immediate support level at $0.046.

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

No more Dogecoin, Shiba Inu and Tezos rewards says Crypto.com

No more Dogecoin, Shiba Inu and Tezos rewards says Crypto.com

Crypto.com made significant changes to Crypto Earn, the product that allows users to stake their assets and earn rewards in exchange. Shiba-Inu-themed meme coins and several other cryptocurrencies were pulled out of the program and FTM, ZIL, and NEAR were added. 

More Crypto.com News

Former Ripple CTO is dumping millions of XRP, traders beware

Former Ripple CTO is dumping millions of XRP, traders beware

XRP price shows promise that it is ready to trigger a massive run-up as the first half of the year comes to an end. There are three reasons why investors should be bullish on Ripple.

More Ripple News

This is how Cardano’s Vasil hard fork can impact ADA price

This is how Cardano’s Vasil hard fork can impact ADA price

Cardano price seems to be preparing for massive gains as Vasil hard fork takes one step closer to becoming a reality. In a recent Twitter thread, IOHK, the developers behind Cardano announced the launch of Cardano node 1.35.0 on June 25.

More Cardano News

How trade SafeMoon price for a quick profit?

How trade SafeMoon price for a quick profit?

SafeMoon price gets ready for a quick run-up amid a bearish challenge. As a result, SAFEMOON has been consolidating below a crucial resistance barrier. Investors can expect the altcoin to resume its run-up soon.

More SafeMoon News

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP