- DOGE has remained in a bullish trend.
It was trading at around $0.108 as of press time.
As a seasoned analyst with years of experience observing the cryptocurrency market, I find myself intrigued by the current state of Dogecoin (DOGE). While its bullish trend is evident, as it has surpassed a significant Relative Strength Index level, other indicators suggest that DOGE needs more robust momentum to maintain its gains.
In simpler terms, the value of Dogecoin [DOGE] has just surpassed a significant Relative Strength Index (RSI) threshold, suggesting an upward trend. Yet, additional signs hint that Dogecoin needs stronger momentum to maintain its growth or climb further.
Dogecoin enters critical Fibonacci levels
At present, Dogecoin stands at approximately $0.108, representing a decrease of 1.77%. In the short term, its price trend seems slightly bearish. The yellow line, which represents the 50-day moving average, hovers around $0.1023, while the 200-day moving average (the blue line) is at $0.1371.
Trading below both moving averages suggests a bearish long-term trend for Dogecoin.
In simpler terms, the important Fibonacci levels are indicating that the present price is near the no-change point at approximately $0.11087, which currently functions as a strong barrier for any further increase in price.
The potential resistance point for further price increase is found at the 23.6% Fibonacci retracement mark, which amounts to approximately $0.11796. On the other hand, possible support points where the price might stabilize if it drops are around $0.09230 (38.2% level) and $0.08084 (100% retracement).
If Dogecoin manages to climb beyond its 50-day moving average and overcome the $0.11087 barrier as resistance, it may aim for a potential price point of $0.11796 which represents a 23.6% retracement level.
Maintaining an upward trend beyond the current level would signal a change in direction, targeting the next potential barrier at $0.12943 (which represents a 61.8% retracement). Generally speaking, Dogecoin is experiencing a period of consolidation and may burst through its current resistance levels if it gains enough momentum.
Can Dogecoin garner enough trading volume?
As per information from CoinMarketCap, the market value of Dogecoin currently stands at approximately $15.7 billion. In comparison to other popular meme-based cryptocurrencies, Dogecoin’s price has increased by over 2% during the last week, which is the smallest growth among its peers in this category.
The current trading volume stands at around $506 million, reflecting a decrease in activity over the past 24 hours.
On regular weekends, trading volumes tend to decrease. However, for Dogecoin to surpass its upcoming Fibonacci resistance level, it requires a substantial boost in trading activity.
Active addresses show declining activity
A significant factor influencing Dogecoin’s possible price growth is the count of daily active wallets. Although there have been efforts to boost its value, these daily active wallets haven’t shown the same degree of enthusiasm as before.
The number has slightly declined over the past three days.
The data shows that around 45,000 unique addresses were actively used each day from September 19th through the 20th. But on September 21st, the figure dropped to about 43,000.
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2024-09-23 03:03