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Dogecoin price eyes $0.10 target, on-chain metrics support bullish outlook for DOGE price

  • Dogecoin price could extend its gains after hitting $0.077 for the first time in nearly three months. 
  • DOGE token’s on-chain metrics support thesis for price rally in the meme coin as more token holders edge closer to profitability.
  • The meme coin notes higher on-chain activity and creation of new wallets, driving demand among traders.

Dogecoin, one of the largest meme coins in the crypto ecosystem, is on track to possibly extend its gains further this week. The meme coin crossed the barrier at $0.077, making a comeback to this level for the first time since August 2023.

According to on-chain metrics for DOGE, there is scope for further gains and the outlook on the asset continues to remain bullish. 

Also read: Dogecoin Price Forecast: Why this week is important for DOGE holders

These on-chain metrics support a bullish thesis for DOGE price

Global In/Out of the Money around price

An on-chain indicator from data intelligence platform, IntoTheBlock, In/Out of the Money around price (IOMAP) reveals the percentage of DOGE wallet addresses that are currently sitting on unrealized profits or losses. At the current DOGE price of $0.0759:

  • 50.29% wallets are “In the Money,” meaning they are sitting on unrealized profits (their average cost of acquisition is lower than the current DOGE price.)
  • 26.40% wallets are “Out of the Money,” meaning they are sitting on unrealized losses

Typically, as the percentage of wallets “In the Money” climbs, we are nearing a local top in DOGE price. As seen in the chart below, there is a support wall at $0.0710 to $0.0732 with its 221.06K addresses holding 29.21 billion DOGE. Support outstrips resistance at $0.0766 to $0.0817 with its 154.16K addresses holding 4.79 billion DOGE, therefore the asset has the potential for an upward breakout. It is important to note that traders need to be cautious as the asset approaches what is likely a local top.

If Dogecoin price slices through the $0.0817 level, the next key hurdle is at $0.0137.

DOGE

Global In/Out of the Money DOGE

Daily Active Addresses, New addresses: Both metrics climbed in November 

Between November 1 and 8, Daily Active Addresses and New Addresses climbed 22.36% and 55.00% respectively, as seen in the chart below. Rises in these metrics supports a bullish thesis, as it indicates rising demand for DOGE among market participants.

DOGE

Daily active addresses and new addresses in DOGE

DOGE Futures Open Interest 

pen Interest in DOGE climbed to levels previously seen in August 2023, alongside the increase in price, based on data from Coinglass. Rising Open Interest implies there is an increase in capital inflows to the asset, supporting a bullish outlook.

DOGE

DOGE Futures Open Interest and price 

The $0.1000 target becomes relevant for DOGE as the meme coin recently crossed the $0.0770 level. In addition, it marks the next key resistance for Dogecoin price in its uptrend. 

 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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