Dogecoin price pumps as high-cap investors consider taking profit


  • Dogecoin price rose by 185% since the last week of October.
  • On-chain metrics suggest whales may be interested in taking profit.
  • Invalidation of the bullish trend is a breach below $0.10.

Dogecoin price pulled off a jaw-dropping rally during the final days of October. The majority of the technical indicators suggest DOGE will continue to rise. Key levels have been defined to determine the notorious meme coin's next targets.

Dogecoin price is way up

Dogecoin price stunned the crypto market as a rocket-like rally took place during the final days of October. On November 2, after establishing a high at $0.158, the DOGE price found itself 185% above the prices it traded at for several weeks during the summer.

Dogecoin price currently auctions at $0.1309. The uptrend has established a classic ramping pattern on the Volume Profile Indicator, while the Relative Strength Index (RSI) is now in extremely overbought conditions. As the 8-day exponential and 21-day simple moving averages hover below the current auctioning price, there is no clear sign that the uptrend is over.

On-chain metrics show that some whales in the market are satisfied with their recent gains and may be sidelined unless a better-discounted DOGE price is offered.

Santiment's Daily Active Addresses show a significant uptick in movement, suggesting DOGE investors are interested in taking profits. Furthermore, the Whale Transaction Count shows a massive uptick in activity, the largest influx of movement this year. The indicator is based on whales transferring over $100,000 of DOGE. Statistically, the peaks of this indicator came in near a market reversal this year. Thus, the newly established bull run could be in jeopardy based on this indicator. 

tm/doge/11/1/22

Santiment's Daily Active Address, Price and Whale Transaction (>100k) Indicators

Considering these factors, sidelined bulls may want to practice healthier risk management techniques during this highly volatile environment. If market conditions are genuinely bullish, a pump towards $0.17 could occur in the coming days, resulting in an additional 20% rise. 

On the contrary, if the on-chain metrics are correct, a breach below the 8-day exponential moving average at $0.10 could wreak havoc on the DOGE price. The breach would give the bears confidence to aim for the 21-day simple moving average at $0.08. Such a move would result in a 40% decrease from the current Dogecoin price. 

tm/doge/11/1/22

DOGE/USDT 1-Day Chart

In the following video, our analysts deep dive into the price action of DOGE, analyzing key levels of interest in the market. -FXStreet Team

 


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