Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- DOGE struggled to break above VAL, despite support at key price level.
- On-chain metrics suggested a network-wide accumulation could be in progress.
Dogecoin [DOGE] has been on a downward trend since 4 April, after it failed to break the $0.1016 resistance level. Its recent price action has confined it to a tight range, oscillating between the $0.0700 support and Value Area Low at $0.0750.
Realistic or not, here’s DOGE market cap in BTC’s terms
With Bitcoin [BTC] posting gains of 3.9% within the past 24 hours, an uptick in volume could spur a price recovery for DOGE.
$0.0700 support level holds firm for now
Source: DOGE/USDT on Trading View
On the 12-hour chart, the Visible Range Volume Profile showed that the Value Area High (VAH) and Value Area Low (VAL) sat at $0.0940 and $0.0750, respectively. The Point of Control (POC) at $0.0818 lay very close to the resistance level at $0.0805. The VAL acted as a minor resistance on 18 May, with prices unable to push past it.
With price rebounding off the $0.0700 support level, on-chart indicators could provide some insight into DOGE’s next move.
The Relative Strength Indicator (RSI) and Chaikin Money Flow (CMF) both flashed mild bullish signals. The RSI rose above the neutral 50 mark and stood at 53 as of press time. The CMF also stood at +0.06 to hint at growing capital inflows. However, the On Balance Volume (OBV) remained flat, which could hamper any potential bullish rally.
Any significant advancement for bulls will require a close above the VAL before targeting the resistance level at $0.0805. On the flip side, a retest of $0.0700 would see the level cave to the selling pressure. This could see bears target the March low of $0.0632.
Read Dogecoin’s [DOGE] Price Prediction 2023-24
Accumulation in progress?
Source: Santiment
Data from Santiment showed the mean coin age (90-day) has been on the rise, since 17 May. This hinted at a network-wide accumulation, due to decreased token movement between addresses, resulting in a reduction in sell pressure.
The rise of the mean coin age also coincided with a sharp drop in dormant circulation, showing a lack of intense selling. These factors combined could see DOGE experience increased demand, and thereby a bullish recovery.
