Dogecoin hits $0.144 roadblock – Will DOGE see a price correction?

Dogecoin’s popularity increased sharply during the bull rally.
The last 24 hours were bearish as the memecoin witnessed a slight correction.

As an analyst with over two decades of experience in the financial markets, I have witnessed numerous bull runs and corrections, from tech stocks to cryptocurrencies. The recent surge in Dogecoin [DOGE] has been quite intriguing, given its origins as a meme coin.

Last week, I witnessed an exhilarating bull run with Dogecoin [DOGE], as its price soared by double digits. This surge has undeniably boosted the global appeal of this popular meme coin over the past couple of days.

But will that popularity be enough for DOGE to sustain the bullish momentum?

Decoding Dogecoin’s bullish rally

Based on CoinMarketCap’s data, the Dogecoin enthusiasts made a strong effort last week. The value of this meme-based cryptocurrency surged over 27% in just a week.

As an analyst, I’ve observed a significant surge in the recent bull rally that has positively impacted Dogecoin (DOGE). According to data from IntoTheBlock, this rally has placed more than 5 million Dogecoin wallets into profit, representing approximately 80% of the total DOGE address count. This indicates a substantial increase in the number of profitable DOGE holders due to the current market trend.

Currently, a well-known cryptocurrency expert named Emperor Osmo has shared some intriguing news on Twitter. According to his post, Dogecoin (DOGE) is gaining traction as it tops the list in meme-related conversations and interest.

AMBCrypto’s analysis of Santiment’s data also pointed out a similar development.

Last week saw a rise in the social activity surrounding Dogecoin. Moreover, the coin’s overall sentiment score was predominantly positive for most of the days last week.

It’s evident that there was a strong positive outlook towards DOGE among investors, as they anticipated the coin’s value would continue to increase.

Dogecoin hits $0.144 roadblock – Will DOGE see a price correction?

This is the catch!

Yet, despite its surge in popularity, the memecoin failed to sustain its bullish trend. In fact, over the past 24 hours, its price has decreased by over 1%.

Currently, as I pen this down, Dogecoin’s value stood at approximately $0.141 in the market. Its market cap surpassed $20 billion, positioning it as the eight largest cryptocurrency in existence.

Consequently, AMBCrypto decided to examine the coin’s present condition more closely to gain insight into its potential future behavior.

Based on our examination, the MVRV (Market Value to Realized Value) of Dogecoin stayed elevated, suggesting a potentially positive outlook. Yet, it appears that Dogecoin miners may not be entirely optimistic about the currency.

It’s clear that miners sold Dogecoin in large quantities since they noticed a decrease in their held supply. This suggests that they chose to sell when its value was increasing, anticipating a reversal in the trend.

Dogecoin hits $0.144 roadblock – Will DOGE see a price correction?

As I delved into the analysis of Dogecoin’s daily price chart, it became apparent that the coin encountered rejection at a notable resistance level around $0.14428. This resilience could potentially be attributed to an increase in selling pressure in the market.

Realistic or not, here’s DOGE market cap in BTC’s terms

The Money Flow Index (MFI) for Dogecoin has moved into an overly bought state, potentially leading to a drop in price. Yet, the Moving Average Convergence Divergence (MACD) remains indicative of a strong bullish trend in the market.

This could allow the memecoin to go above the resistance in the coming days.

2024-10-20 15:04

Decoding Dogecoin’s bullish rally

This is the catch!

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