Dogecoin Price Analysis: DOGE Grinds Closer To Potentially Massive Breakout Eyeing $0.4
- Dogecoin price lags uptrend under $0.3, but bulls have eyes glued to $0.4.
- The IOMAP on-chain metric shows that massive support areas keeping the DOGE on an upward trajectory.
Dogecoin appears to have pushed the throttle all the way forward and is preparing to take off. This comes after a real break above $0.2, allowing bulls to gasp for air in the wake of paralyzing losses at $0.16.
Meanwhile, the bullish leg has closed in on $0.3, but the uptrend seems to delay due to the seller congestion. According to the 12-hour chart, the 200 Simple Moving Average (SMA) challenges the bulls' effort. However, if this barrier comes out of the way, Dogecoin will quickly gain traction toward $0.4.
Dogecoin Price Uptrend Steadies As Technicals Improve
As Dogecoin lifted above $0.2, the Moving Average Convergence Divergence (MACD) sent a buy signal, adding credence to the optimistic outlook.
The MACD follows the path of a trend and calculates its momentum. With a 12-day exponential moving average above the 26-day EMA, buyers have the upper hand. In addition to that, Dogecoin's bullish narrative is validated as the MACD moves higher above the mean line.
Similarly, the Relative Strength Index's (RSI) rebound from July's oversold conditions to levels around 70 shows that the bullish grip is firm. If the RSI explores the overbought region toward 80, buyers will have room to trigger more gains above $0.3 before a correction comes into play. Dogecoin could also resume a long-term bull cycle as investor speculation mounts toward $0.4 and $0.5.
DOGE/USD 12-Hour Chart
IntoTheBlock's In/Out of the Money Around Price (IOMAP) model reveals the presence of a minor supply barrier that may delay Dogecoin from accomplishing its upside potential in the short term. This region runs from $0.307 to $0.31, where 36,500 addresses purchased 3.35 billion DOGE.
The seller congestion in this area may have the ability to absorb some of the buying pressure seen recently. Holders who have been underwater may try to break even on their positions, slowing down the uptrend. However, if Dogecoin can slice through this hurdle, it would likely climb to $0.4.
Dogecoin IOMAP On-Chain Metric
On the flip side, the IOMAP model shows that DOGE sits on top of stable support zones. Nearly 63,000 addresses bought roughly 3.65 billion, around $0.25, making this area the most robust support. The buyer congestion in this area of interest suggests that bears will struggle to push prices down. Hence, the odds currently favor the bulls.
It is worth mentioning that Dogecoin should close the day above $0.3 to ensure market stability remains intact and keep the bulls' focus on $0.4. Otherwise, overhead pressure could start increasing, thus pulling down DOGE toward $0.25 and $0.2, respectively.