- Dogecoin price is making a fourth attempt to break the $0.0786 critical resistance with a target objective of $0.0850 in mind.
- DOGE could rise 10%, steered by bullish on-chain metrics with increased crowd interaction for the leading meme coin.
- Invalidation of the bullish outlook will occur upon a decisive candlestick close below $0.0675.
Dogecoin (DOGE) price will not relent despite multiple rejections from a crucial supply barrier as the $0.0850 remains an enticing target.
Dogecoin price eyes $0.0850 with intent
Dogecoin (DOGE) price is up 7% after the $0.0722 support level broke its fall in the three-day crash beginning November 12 to 14. It came after a rejection from the midline of the supply zone at $0.0786, a critical hurdle that continues to keep DOGE stunted.
With DOGE bulls still in the driver’s seat, Dogecoin price could still overcome the said roadblock as momentum continues to rise, indicated by upward-facing Relative Strength Index. The Awesome Oscillator (AO) also bolsters the case to the upside as they continue to hold in the positive territory.
For a confirmed uptrend, Dogecoin price must overcome and close above the $0.0786 resistance level, to flip the supply zone extending from $0.0767 to $0.0803 into a bullish breaker above the $0.0815 resistance level. This would not only bring the $0.0850 target within grasp, but would also open the expanse for the dog-themed coin to foray higher.
DOGE/USDT 1-day chart
Dogecoin onchain metrics to support bullish outlook
Several on-chain metrics from behavior analytics platform Santiment support the bullish outlook. For starters, whale activity is increasing, with the total number of DOGE transfers taking place on the chain that is worth more than $100,000 USD and more than $1 million USD is increasing. This bolsters the case to the upside.
DOGE Santiment: Whale transaction count
Adding weight to the bullish thesis, the daily active addresses are also increasing, indicating that newer unique addresses continue to be involved in DOGE transactions and pointing to a growing crowd interaction. When a rise in Tether (USDT) stablecoin and an increasing volume of active stablecoin deposits support this metric, it shows that new players are buying the asset with fresh capital flowing into the market to drive Dogecoin price.
DOGE Santiment: Active stablecoin deposit, USDT market cap, daily active addresses
However, should Dogecoin price meet yet another rejection from the $0.0786 resistance level, the price could pull south, potentially breaking below the $0.0722 support level. In the dire case, it could slip below the 25-, and 50-day Exponential Moving Averages (EMA) at $0.0716 and $0.0685 levels to test the $0.0675 support level, or worse, the 100-day EMA at $0.0673. Such a move would denote a 12% slump, invalidating the current bullish outlook.
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