- Dogecoin’s bi-monthly RSI surge mirrored the bullish setup seen before 2020’s rally
- Positive on-chain metrics and cautious optimism underlined potential
As a seasoned analyst with over a decade of experience in the crypto market, I have seen bull runs and bear markets come and go. The current surge in Dogecoin [DOGE]’s bi-monthly RSI reminds me vividly of the setup we witnessed before 2020’s rally – a pattern that often precedes a major move.
Dogecoin’s (DOGE) relative strength index (RSI) has spiked to levels not observed since 2020, similar to a pattern that sparked a significant surge in the past. At the moment, DOGE is trading at $0.2112, an increase of 7.17% over the last day. Given this trend, Dogecoin seems poised for a possible breakout on the charts.
Important to mention, as crucial resistance points are being reached, the next three price movements (candles) could significantly influence whether Dogecoin’s current trend propels it into a fresh bullish stage.
Is the technical setup favoring a breakout?
The bi-monthly Relative Strength Index (RSI) for Dogecoin recently hit 68.15, suggesting a buildup of buying demand. In 2020, a comparable RSI level preceded a significant price increase. Consequently, many are now speculating that Dogecoin may be about to experience another significant price movement based on this development, as suggested in an X post (previously known as Twitter).
On the other hand, although a high Relative Strength Index (RSI) suggests power, it may also signal an overbought situation. Therefore, the earlier observation leads us to ponder if the current momentum will persist or if a brief period of stabilization is more probable instead.
The latest candlestick patterns show that Dogecoin has been consistently increasing in value, reaching new highs – an indication of increasingly positive investor sentiment. However, at this moment, the price is encountering a significant resistance level at $0.229. If it manages to break through this barrier, it would confirm a bullish trend, but if not, there might be a short-term dip, possibly delaying Dogecoin’s next surge in value.
DOGE on-chain signals – Fundamentals aligning with price movement?
As an analyst, I’ve noticed some encouraging signals from the on-chain metrics regarding Dogecoin. Specifically, the network’s net growth expanded by 0.26%, pointing towards a surge in user engagement and curiosity within the Dogecoin ecosystem. This type of expansion usually coincides with persistent optimistic sentiments, implying that an influx of users are joining the Dogecoin community as its value continues to rise.
0.74% of these addresses were in a profitable state at the current moment, suggesting that holders are earning profits and maintaining a steady ownership pattern.
Moreover, a significant increase of 8.13% in substantial transactions suggests increased participation from major market actors. This surge could be seen as a favorable indicator, aligning well with the memecoin’s recent spike in value.
The number of daily active users on Dogecoin has been significantly increasing, reaching over 32,000 as per data from Santiment analytics. This surge in activity corresponds with a general positive market outlook, indicating that an increasing number of people are now actively participating in transactions using Dogecoin.
DOGE market sentiment – Are traders betting on a breakout?
In the end, it was found that a slight majority of 51.85% of traders held long positions, compared to 48.15% who were short.
Exhibiting a balanced anticipation, traders are getting ready for an upward surge, but they stay vigilant for any potential obstacles. If the price surpasses $0.229 significantly, it might solidify a positive viewpoint, inviting even more investors.
Due to an increase in Relative Strength Index (RSI), positive on-chain indicators, and a well-balanced market mood, Dogecoin displayed encouraging signals suggesting a potential surge or breakthrough.
Should it surpass the $0.229 barrier, there’s potential for an intense upward momentum in its rally. But if it fails to breach this threshold, it might cause a brief halt.
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2024-11-10 05:11