Dogecoin Price Prediction: This supply barrier stands between DOGE and its $0.100 target objective

Dogecoin’s (DOGE) price breakout beginning in mid-October has been remarkable, bringing the largest meme coin by market capitalization to levels last tested in August. However, the upside potential is now under threat with the cryptocurrency facing a crucial supply barrier that will determine whether DOGE makes it to the $0.100 target or not.

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

Dogecoin price uptrend under threat

Dogecoin (DOGE) price is bullish, sustaining the uptrend that commenced around October 13. The odds still favor the upside, save for the supply barrier extending from $0.076 to $0.080. This supply zone is characterized by aggressive selling, meaning the price could turn around here unless buyer momentum overpowers selling pressure.  

Increased buying pressure above current levels could see Dogecoin price foray into the supply zone. DOGE recording a decisive daily candlestick close above the midline of this order block would confirm the continuation of the daily uptrend (intermediate trend). A break and close above the $0.081 resistance level would render the supply zone a bullish breaker, clearing the path for a stretch north.

In a highly bullish case, Dogecoin price could shatter the $0.085 level before a stretch to the $0.090 psychological level. Such a move would constitute a 20% climb above current levels. In highly ambitious cases, the leap could extrapolate to the forecasted $0.100 target, completing a 30% move from the current price.

The Relative Strength Index (RSI) supports the outlook, with its position at 63 showing there is still more room to the upside before consideration of an overbought DOGE comes into play.

In addition, the Awesome Oscillator (AO) remains effectively in positive territory with a steady series of green histogram bars. This bolsters the case for more upside.

DOGE/USDT 1-day chart

Dogecoin on-chain metrics to support bullish outlook

Behavior analytics platform Santiment displays multiple metrics in favor of the bullish outlook. For starters, the volume of active stablecoin deposits and the Tether (USDT) stablecoin market capitalization is increasing. This points to fresh money flowing into the DOGE market. This is enhanced by rising open interest as investors’ appetite to profit from DOGE grows.

Social dominance is also rising, as the share of DOGE mentions on crypto-related social media continues to rise relative to a pool of more than 50 other altcoins.

DOGE Santiment: Active deposits, social dominance, open interest, USDT market capitalization

Similarly, large holders are also showing interest in DOGE. The number of transactions moving between $100,000 and $1,000,000 worth of DOGE is also rising. This is bullish for Dogecoin price.

DOGE Santiment: Whale transaction count

Most importantly, the volume of daily active addresses, which points to the number of unique addresses involved in daily DOGE transactions, has increased. With more crowd interaction around the meme cryptocurrency, volatility is expected with the odds favoring the upside.

DOGE Santiment: Daily active addresses

Conversely, if the supply zone holds as a resistance block, Dogecoin price could pull south, potentially losing the support offered by the 200-day Exponential Moving Average (EMA) at $0.068. In a worst-case scenario, the slump could extend below the $0.067 support before testing the confluence between the 100-day and 50-day EMA at $0.066. The move would denote a 10% fall from current levels.