- Dogecoin price is grappling with the trading range’s midpoint at $0.178, eyeing further gains.
- Investors can expect DOGE to shatter the $0.197 barrier and make a run at the $0.22 hurdle.
- On-chain metrics hint bullish as they display the entry of high networth individuals at the current levels.
Dogecoin price is trying to move past its recent swing high to set up higher highs. While a minor and brief downswing might be possible, the overall short-term outlook for DOGE is bullish.
Dogecoin price eyes higher highs
Dogecoin price is grappling with the trading range’s midpoint at $0.178 and shows its intention to move higher. There is a minor possibility that DOGE might take a brief dip before it heads higher. Regardless of this outcome, Dogecoin price is ready to move higher.
The first hurdle that the buyers will encounter is the $0.197 resistance barrier after a 10% climb. Beyond this level, DOGE will revisit the $0.22 ceiling and make a run at the liquidity resting above it.
In total, this leg-up would constitute a 25% ascent.
DOGE/USDT 4-hour chart
From a technical perspective, tagging the $0.22 level might seem like overreaching, but IntoTheBlock’s Global In/Out of the Money (GIOM) model shows a significant cluster of underwater investors resting around $0.22.
Here, roughly 430,000 addresses that purchased 18.36 billion DOGE are “Out of the Money.” Therefore, any more beyond this level might be a high resistance run as these holders might want to break even.
DOGE GIOM chart
Further supporting the bullish outlook is the 272% uptick in transactions worth $100,000 or more. Since November 20, these transfers have gone from 862 to 3,261.
This trend indicates that high networth investors are interested in DOGE at the current price levels.
DOGE large transactions chart
While things are looking up for Dogecoin price, a failure to maintain the bullish momentum could lead to a retracement. If this correction pushes DOGE to produce a lower low below $0.158, it will invalidate the bullish thesis.
In such a situation, market participants can expect Dogecoin price to venture lower and potentially retest the $0.13 support level.
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