Nexo

We’re Giving out 10 BTC in Rewards until the Bitcoin Halving

Learn More

Dogecoin May Break Out with $0.43 in Target Range

Dogecoin is showing signals that it may advance higher.

Dogecoin May Break Out with $0.43 in Target Range
Photo: BBbirdZ

Key Takeaways

  • Dogecoin sliced through a critical resistance barrier in the past few hours.
  • As long as prices stays above $0.26, the odds should favor the bulls.
  • Further buying pressure could push DOGE to $0.43.

Share this article

Dogecoin is the latest meme coin that looks poised to resume its uptrend. Both technical and on-chain metrics suggest that DOGE could possibly enter a new bull run in the short-term.   

Dogecoin Ready to Resume Uptrend

Dogecoin appears to be breaking out after enduring a five-month-long consolidation period. 

Since late April, the tenth-largest cryptocurrency by market cap has been developing a descending triangle on its daily chart. As DOGE’s price recorded a series of lower highs, the $0.17 level has acted as support. 

Dogecoin US dollar price chart 
Source: TradingView

A recent spike in buying pressure appears to have pushed Dogecoin beyond the triangle’s hypotenuse, which can be considered a breakout. If DOGE can print a daily candlestick close above $0.26, it is possible the coin could enter a 78% bull rally toward $0.43. 

Such an impressive bullish target would be determined by measuring the triangle’s y-axis and adding that distance to the breakout point. 

Whales Are Back

The number of large transactions on the network (i.e., those with values greater than $100,000) can act as a proxy to measure institutional players’ and whales’ activities. A significant increase in large transactions could indicate that wealthy investors are beginning to position themselves for a new bull run.

Roughly 2,200 large transactions are currently being executed on the Dogecoin network, representing a 100% increase since Sep. 28. The rising on-chain activity might suggest that whales are starting to take control of the price action. 

If this metric starts to record a series of higher highs, the odds would likely favor the bulls, and DOGE may achieve its upside potential. 

Dogecoin transaction activity
Source: IntoTheBlock

It is worth noting that a decisive candlestick close above $0.26 must occur to validate the bullish outlook. Failing to regain this level as support could result in a steep correction for Dogecoin as $0.20 and $0.17 are the most significant interest areas underneath it. 

For more key market trends, subscribe to our YouTube channel and get weekly updates from our lead bitcoin analyst Nathan Batchelor.

Share this article

Loading...