Dogecoin is finally starting to reconnect with the green and is currently clinging to support at $0.06. Can we talk about a real change in trend?
After gaining 3.34% on the day, the market capitalization of the crypto market is back above the $945 billion mark. After a long downtrend, various altcoins, especially XRP and Dogecoin, seem to be regaining color.
Granted, DOGE only gained 4.5% on the day, which isn’t huge compared to some of its rivals. However, the evolution of some long-term on-chain and technical indicators seems to have increased social anticipation among memecoin HODLers.
DOGE breaks barriers
Since September 13, Dogecoin has posted several lower lows (channels lower than the previous ones). Previously, memecoin could make occasional profits by taking advantage of short-term bullish trends in the market or social anticipation.
In the early hours of September 23, DOGE recorded its first highest low (higher than the previous one) after a long downtrend, suggesting a reversal of the $0.057 support level.
Note that the Dogecoin price crashed by more than 30% during the second half of August. It also suffered a further 12% drop between Sep 3-20 after being rejected by the $0.065 resistance zone.
Last week, DOGE formed a double bottom and managed to break above the crucial $0.06 resistance zone.
whales to the rescue
The analysis of wallets of HODLers reveals that the number of addresses containing between 100 million and 1 billion DOGE increased by 5.13% over the last week.
In addition to improving technical indicators, some six new whales joined the network, amassing around 620 million DOGE during the same period.
While the Dogecoin whales seem to be coming to the memecoin’s rescue, the token still has some hurdles to overcome before we can speak of a true trend reversal.
Despite mounting buying pressure, IntoTheBlock’s IOMAP reveals that Dogecoin is facing stiff resistance around $0.069, where over 86,000 addresses hold over 42 billion DOGE.
Furthermore, on the shorter-term charts (1hr and 4hrs), the Dogecoin RSI hints at a easing of buying pressure as the price hovered around the $0.061 mark.
If DOGE manages to close the next few days with a price of $0.069, it could start a bullish movement. Otherwise, if the bear market takes control, the asset could drop back to $0.057.
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