How DOGE could offer new buying opportunities
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- DOGE posted gains of 15.8% after recent losses.
- Rising mean coin age hinted at DOGE accumulation.
The crypto market recovered from last week’s volatility with a 1.37% increase in the global crypto market cap over the past 24 hours, according to data from CoinMarketCap.
Read Dogecoin’s [DOGE] Price Prediction 2023-24
The general market volatility saw Dogecoin [DOGE] sink to a year-low of $0.0529. However, the meme coin registered gains of 15.8% over the past three days to trade at $0.0621, as of press time.
With Bitcoin [BTC] recording an upside move from $25.8k to $26.2k in the last 24 hours, DOGE buyers could be looking to register more gains as the price approached a key resistance level.
Can bulls reverse recent losses?
DOGE’s bearish swing hit new lows on 10 June. Price had previously been stuck in a range between $0.0805 (resistance) and $0.0700 (support), as bulls put up a fierce defense of the support level.
However, two sharp downward moves on 5 June and 10 June saw bears break through the $0.0700 and $0.0632 support levels. Bulls could rebound at the minor support of $0.0582. With the price approaching a new resistance level at $0.0632, bulls will need to clear two barriers to gain leverage.
The Visible Range Volume Profile (VRVP) on the four-hour timeframe showed that the Value Area Low (VAL) stood at the key $0.0632 resistance level. A bullish rally will be needed to clear both barriers, with a session close above the VAL and resistance level.
This could see bulls target the $0.0700 resistance and Point of Control (POC) barrier at $0.0725. On the other hand, a price rejection at the $0.0632 level could see bears drive the price lower, with $0.0582 and $0.0506 as short-term targets.
Meanwhile, DOGE buyers were encouraged by bullish signals from the on-chart indicators. The RSI climbed out of the oversold zone and stood at 43, as of press time. Decent capital inflows also saw the CMF rise above the zero mark with a reading of +0.06.
Realistic or not, here’s DOGE’s market cap in BTC’s terms
Rising mean coin age hinted at increased bullish activity
Data from Santiment revealed that the 90d mean coin age has steadily climbed since 16 May. This hinted at a network-wide accumulation trend in progress which could spur a significant bullish rally.
Similarly, the aggregated Funding Rate data from Coinalyze showed steady demand in the futures market for DOGE. This suggested significant backing from buyers for another attempt at a bullish rally.