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Will Dogecoin restart its run-up to tag $0.17 this time

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Source: Pexels

Dogecoin’s price shows signs of incoming buying pressure that could be the key in triggering another run-up that retests a previously tagged level. This move is important since a flip of the hurdle could catalyze a further up move.

Dogecoin price to retrace its steps back higher

Dogecoin price has crashed a whopping 85% from its all-time high and is currently hovering around $0.14. From 29 September 2021 to March 23, it formed three distinctive lower highs and lower lows, which when connected using trend lines reveals a falling wedge pattern.

This technical formation forecasted a 34% upswing, which is obtained by adding the distance between the first swing high and swing low to the breakout point. The said breakout took place on 24 March at roughly $0.130, revealing the target at $0.178.

While the initial move after a breakout and retest was impulsive, it shattered the $0.161 hurdle and tagged the first target at $1.78. However, a further upswing was not possible as investors began to book profits and the market structure for the big crypto deteriorated. As a result, DOGE triggered its corrective move to 0.13 forming a base around this level.

A resurgence of buying pressure is pushing the meme coin back above the $0.144 hurdle in an attempt to retest the $0.178 barrier. This run-up could constitute a 23% ascent, but a flip of the said ceiling could extend the rally to $0.216, bringing the total gain to 50%.

Source: TradingView, DOGE/USDT 1-day chart

Further adding a tailwind to the bullish outlook for Dogecoin price is the 365-day Market Value to Realized Value (MVRV) model. As mentioned in previous articles, this indicator is used to assess the average profit/loss of investors who purchased DOGE tokens over the past year.

A value below -10% indicates that short-term holders are selling at a loss and is typically where long-term holders tend to accumulate. Therefore, a value below -10% is often referred to as an “opportunity zone,” since the risk of a sell-off is less.

For DOGE, this indicator has been hovering below the zero line since Q4 of 2021 and is currently at -38%, suggesting that many investors are underwater. Therefore, long-term investors could scoop up the DOGE tokens at a discount further propping up the price of the meme coin and triggering a quick run-up.

Source: Santiment

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Manisha is a News Editor at AMBCrypto. With a Master's degree focused on Mass Communication, Manisha is good at multitasking with an eye for detail. She is fascinated by new, emerging technologies and her interests lie in the regulatory implications of such tech.

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