- Dogecoin price has bounced off the $0.128 support level and set up a base around $0.14,
- A potential surge in buying pressure is likely to trigger a 15% rally for DOGE.
- A daily candlestick close below $0.128 will create a lower low, invalidating the bearish thesis.
Dogecoin price eyes a liftoff
Dogecoin price saw a string of red candlesticks starting January 16 when it crashed 35% in six days. This downswing sliced through the December 4 swing low at $0.128 but recovered and closed above it.
Since then, DOGE has produced a sideways movement indicating consolidation around the $0.14 barrier. Any short-term spike in buying pressure is likely to propel Dogecoin price into a 15% ascent to $0.164. This level coincides with the 50-day Simple Moving Average (SMA), making the confluence a tough hurdle to cross. Assuming buyers band together and overcome this resistance barrier, there is a good chance this run-up can extend to $0.194, roughly coinciding with the 100-day SMA. This move would bring the total climb to 37%.
DOGE/USDT 1-day chart
Supporting this uptrend scenario for Dogecoin price is the sudden spike in the 24-hour active addresses from 139,490 to 436,630 since January 25. This 213% uptick in the active addresses suggests that investors are interested in DOGE at the current price levels.
DOGE 24-hour active addresses
Moreover, IntoTheBlock’s Global In/Out of the Money (GIOM) model shows that there is a little-to-no threat from the immediate resistance barrier at $0.155. Here, roughly 147,320 addresses that purchased nearly 5 billion DOGE tokens are “Out of the Money.” Therefore, a short-term uptick in buying pressure is likely to overcome this hurdle, pushing DOGE to the next blockade at $0.183.
On the other hand, if the Dogecoin price slices through the immediate support level at $0.128 to produce a daily candlestick close below it, the bullish thesis will face invalidation. This downswing could be the key in triggering a crash to the $0.09 support floor.
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