Dogecoin price eyes 35% advance as this on-chain metric adds tailwind to DOGE
- Dogecoin price hints at a move higher as it bounces off the demand zone ranging from $0.262 to $0.281.
- The uptick in buying pressure is likely to push DOGE up by 35% to $0.367.
- Transactional data shows DOGE is free to move up to $0.367.
Dogecoin price is in a support cluster that is more than likely to propel it to slice through immediate resistance barriers. Adding to this are the on-chain metrics, which also paint a bullish picture for DOGE.
Dogecoin price anticipates explosive growth
Dogecoin price has slid roughly 22% over the past 16 days and shows that a reversal is likely. The primary reason for an upswing to originate here is the demand zone extending from $0.262 to $0.281. This barrier was a significant resistance barrier during late June and a massive support level from early May to mid-June.
Therefore, investors can expect a bullish reaction that propels DOGE as the buyers make a comeback.
The $0.328 level is the first resistance barrier that the bulls will encounter. Following this, Dogecoin price will retest $0.367, roughly a 35% rally from the current position. Although a further uptrend to $0.40 is likely, it might be short-lived.
DOGE/USDT 12-hour chart
Supporting this uptrend to $0.367 is IntoTheBlock’s Global In/Out of the Money (GIOM) model, which shows a relatively small resistance zone.
Roughly 25,220 addresses that purchased 3.15 billion DOGE at an average price of $0.296 is the only cluster of underwater investors preventing Dogecoin price from climbing higher. However, this area is relatively small compared to the ones around it.
Therefore, a potential spike in buying pressure will easily slice through these barriers and take a jab at subsequent supply zones.
DOGE GIOM chart
While technicals and transaction data points toward a bullish outlook, the number of new addresses joining the Dogecoin network has seen a minute drop.
This metric saw a 16% decline from 23,830 to roughly 20,000 users over the past month. While this change is still negative, it is not a large number to disrupt the bullish outlook. Therefore, investors need to keep a close eye on this metric.
DOGE daily new addresses chart
A bounce to $0.367 seems plausible. However, if the bears break through the demand barrier’s lower trend line at $0.262, it will suggest that the sellers are in control. Moreover, this could also indicate that Dogecoin price might sink lower.
A breakdown of the $0.240 support level will invalidate the bullish thesis for DOGE and, in some cases, trigger a downswing to $0.230.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
