Dogecoin is showing signals that it may advance higher.
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.
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.
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 Sept. 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.
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.