Dogecoin price is showing signs that a massive move is on its way. Well, on-chain metrics are also pointing at a similar outcome. Upon close inspection, this move could most likely favor the bulls.
Dogecoin’s time to shine
Dogecoin price has dropped roughly 83% from its all-time high and is currently hovering around $0.11. From 29 September 2021 to date, DOGE has set up three distinctive lower highs and lower lows. Connecting these points using trend lines reveals the formation of a falling wedge pattern.
This technical formation forecasts a 34% upswing determined by adding the distance between the first swing high and swing low to the breakout point. Assuming the breakout occurs around $0.133, the target would be $0.178.
However, investors need to pay close attention to the recent breakdown of the max pain point at $0.124. A recovery above this barrier would instill confidence among sidelined buyers and this development could serve as a catalyst to trigger a bull rally.
The one-hour active addresses index supports this bullish theory. The number of active addresses surged from 4,831 to 101,300 in less than 12 hours. This sudden uptick in the number of investors interacting with the Dogecoin blockchain indicates that these investors are interested in DOGE at the current price levels.
Therefore, the bullish thesis receives a tailwind from the recent surge in interested market participants willing to buy DOGE.
Furthermore, the whale transaction count, which tracks the number of transfers worth $100,000 or more, also saw a massive increase from 28 to 685.
This metric serves as a proxy of the investment interest from high net worth investors and whales. Therefore, the 2,346% uptick indicates that whales are also looking to invest in DOGE. Market participants should also note that during uptrends, a large spike in whale transaction count coincides with local tops and be used to identify trend changes.
All in all, Dogecoin’s price is looking ready for a move higher. But it needs to recover above the $0.124 resistance barrier. However, a failure to do so could trigger a massive correction that pushes DOGE down to $0.085.
If the bears refuse to back down, the dog-themed crypto could retest the $0.063 support level, which would indicate a 46% crash from the current position.