- DOGE up 15% on the weekly charts, but hit former Q3 support at $0.12
Miners held steady with their tokens and could offer DOGE more room to rally.
As a seasoned researcher with years of experience in the dynamic world of cryptocurrencies, I find myself intrigued by the recent developments in the Dogecoin [DOGE] market. The 15% weekly rally may seem modest compared to Shiba Inu’s [SHIB] 36%, but the potential for DOGE to catch up is quite promising.
On Thursdays trading session, Dogecoin [DOGE] appeared to be trailing behind Shiba Inu [SHIB], which led a powerful surge. Notably, Shiba Inu took the lead in weekly performance with a 36% increase, whereas Dogecoins gains were slightly less, amounting to only 15% over the same time frame.
Currently, there’s a possibility that DOGE might surge by as much as 33%, potentially matching SHIB‘s value. But, in order for this upward trend to continue, an obstacle needs to be overcome first.
Q3 support at $0.12
On a daily basis, Dogecoin (DOGE) recently tested its Q2 support at 0.12 USD. As of now, it has remained below this level since late July. Even though the meme coin didn’t experience an immediate surge after reclaiming the support in mid-July, regaining it could potentially steer it towards a target of 0.16 USD.
As an analyst, I find myself contemplating that if Dogecoin (DOGE) manages to push through to approximately $0.16, it could potentially yield a 33% growth for its bullish supporters. However, a noticeable hurdle lies at the 200-day moving average, currently hovering around $0.13. A robust surge beyond this moving average might propel Dogecoin’s upward momentum towards $0.16.
The increasing number of trades (OBV) and the Relative Strength Index suggest a significant demand for purchasing Dogecoin. This might help Dogecoin’s efforts to regain the support it had in Q2.
However, a price rejection at $0.12 would invalidate the bullish outlook.
Short-sellers suffer $5 million loss
In summary, it appears that the futures market for DOGE showed a robust bullish trend. This is indicated by an increase in Open Interest (OI) and a significant number of short positions being closed out. In just the past day, approximately $5 million worth of these short positions were liquidated.
Consequently, the latest surge to $0.12 has put around 75% of Dogecoin holders in a position where they have potential profits. This might prompt them to cash out some of their gains at the resistance level of $0.12. If this happens, it could potentially disrupt the ongoing recovery process.
Read Dogecoin [DOGE] Price Prediction 2024-2025
Instead, it’s worth noting that miners, a crucial factor in Doge’s supply, have maintained their hold on the tokens they’ve mined since August.
Indeed, starting from July, there was a noticeable increase in the rate at which they accumulated holdings, as evidenced by the surge in Miner’s Supply (represented in red). This decrease in supply pressure from miners might provide Dogecoin (DOGE) additional space to mount another rally.
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2024-09-28 08:07