TL;DR
- Dogecoin’s price is up 10% in two weeks. Analysts see potential for further gains if it breaks resistance at a certain level.
- Some essential indicators, such as the RSI ratio, suggest potential for a rally in the short term.
Is DOGE Ready to Soar?
The biggest meme coin in terms of market capitalization – Dogecoin – remains one of the hottest topics in the cryptocurrency sector due to the substantial number of DOGE investors. Its price currently hovers at the $0.165 mark (per CoinGecko’s data), a 10% spike on a two-week scale.
Multiple analysts believe the uptrend could continue should important price levels be overcome. One person sharing that thesis is the X user, Ali Martinez. He claimed that DOGE faces “significant resistance” between $0.166 and $0.171, where 75,000 addresses have accumulated approximately 10 billion assets.
“However, once this barrier is overcome, DOGE has the potential to double, with the next key resistance around $0.322,” he assumed.
Dogecoin crossed the aforementioned zone a few days ago, and it will be interesting to see whether it can do that again in the following days.
The Crypto Dog and Nebraskangooner also gave their two cents on DOGE. The former acknowledged that the meme coin is “slow and boring” compared to recently emerged cryptocurrencies but maintained it still has a chance to shine.
“Should be some exciting days ahead, and reckon it will outperform Bitcoin,” the analyst predicted.
Nebraskangooner was bullish, too, forecasting a “meme-pump action soon” as long as DOGE stays above the major resistance zone of approximately $0.16.
What Signals About an Incoming Rally?
One important metric that hints at whether DOGE might experience a price increase in the short term is the exchange netflow. Outflows have surpassed inflows in the past 24 hours (according to IntoTheBlock), showing a shift from centralized platforms toward self-custody methods. This is considered bullish since it reduces the immediate selling pressure.
Another indicator worth observing is the DOGE Relative Strength Index (RSI). The technical analysis tool is used to measure the magnitude of recent price changes to evaluate overbought or oversold conditions in the market. It ranges from 0 to 100, with a ratio above 70 suggesting the asset might be poised for a pullback. The latest data shows that RSI stands at around 49.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER 2024 at BYDFi Exchange: Up to $2,888 welcome reward, use this link to register and open a 100 USDT-M position for free!
