- DOGS token formed bullish pattern with a potential breakout and a $0.0012000 price target
- 65% of DOGS holders were in profit, signaling potential for upward price movement
DOGS token, a new memecoin on the TON blockchain, is gaining attention within the crypto community due to its recent price performance. However, despite recording a slight price decline over the past week, analysts believe there may be a possible bullish reversal on the horizon.
At press time, DOGS was priced at $0.001038, with a 24-hour trading volume of $310,482,455. This represented a minor 0.36% decline over the past 24 hours and a 3.65% drop over the past week. With a circulating supply of 520 billion DOGS tokens, the press time market cap stood at $534,686,829.
Technical indicators point to bullish reversal
Mikybull Crypto, a crypto analyst, noted that DOGS appears to be forming a technical pattern known as an inverse head and shoulders. This is often seen as a bullish reversal signal.
The pattern, characterized by three troughs with the middle trough being the deepest, is typically followed by a breakout above a “neckline.”
Source: TradingView
The price of DOGS seemed to form this pattern. And, a potential breakout above the neckline could lead to a price target of $0.0012000.
Additionally, the 50-period and the 100-period exponential moving averages (EMAs) were both at $0.0010400, indicating that the market may be in a consolidation phase. Simply put, the price is now trading close to these resistance levels, which could lead to further indecision between buyers and sellers.
The Relative Strength Index (RSI), at press time, had a reading of 46, slightly below the neutral level of 50. This meant that while bearish momentum was present, the market was not in oversold territory. This left some room for potential upside movement.
Source: TradingView
Growing popularity on the TON blockchain
The growing popularity of DOGS on the TON blockchain is also fueling optimism. Since its Token Generation Event (TGE) where 17 million tokens were claimed within the first two weeks, user interaction with the token has surged.
This hike in activity has helped boost the adoption of the TON blockchain, further establishing DOGS as one of the most widely held tokens across multiple blockchains.
The spurt in transactions and user engagement suggests that interest in DOGS is continuing to grow, despite the recent price fluctuations. As the token gains more holders and becomes more widely traded, its potential for price recovery may strengthen.
In/Out of the money data offers insight
Finally, on-chain data provided us further context for DOGS’ market position. At its press time price of $0.001032, around 65.11% of addresses were “In the Money,” meaning these investors bought the token at a lower price.
Meanwhile, 23.96% of addresses were “Out of the Money,” having bought at higher prices. 10.93% were “At the Money,” with their purchase price close to the prevailing price.
Source: IntoTheBlock
Taken together, this data revealed that a majority of investors are now in a profitable position. This could lead to increased buying pressure if the bullish reversal takes hold.
