Dogecoin Price Analysis: DOGE Prepares For Another Leg Up
- Dogecoin price settled above $0.32 following last week’s correction to $0.276.
- The transaction history model highlights $0.318 as the most robust support zone, propping DOGE for another breakout.
- A declining network growth as shown by IntoTheBlock is a bearish signal likely to hinder expected price action toward $0.5.
Dogecoin joined other crypto assets over the weekend to post incredible gains. As Cardano lifted toward $3, the meme-based token recovered from $0.276 (support toward the end of last week). DOGE brushed shoulders with $0.34 but left the barrier at $0.35 untested, and therefore unbroken.
At the same time, Bitcoin finally gained ground above $50,000 for the first time since May. With another significant milestone achieved, BTC bulls seem to have shifted their attention to $60,000.
Meanwhile, Dogecoin is trading at $0.32 at the time of writing. Holding above this level remains key for extending the bullish leg higher. Trading beyond $0.35 could trigger more buy orders as Dogecoin lifts toward $0.5.
Dogecoin Price Liftoff To $0.5 Looms After Securing Key Support
According to the IOMAP model by IntoTheBlock, Dogecoin is sitting on top of a robust support zone. The region at $0.318 hosts 130,600 addresses that previously bought 11 billion DOGE. As long as this support remains intact, Dogecoin’s path with the slightest resistance will remain upward.
Dogecoin IOMAP Metric
On the upside, no significant barrier could hinder Dogecoin from closing the gap to $0.35. Nonetheless, buyers must close the day above $0.33 to validate the expected liftoff. Here, 54,000 addresses bought 3 billion DOGE.
Besides the support, Dogecoin is in the bulls’ hands, as observed on the daily chart. In addition to holding above $0.32, the meme-based coin is trading above all the key moving averages like the 50 SMA, the 100 SMA, and the 200 SMA, which is bullish.
The SuperTrend indicator can also confirm the bullish narrative. A buy signal sent on August 7 is still intact, hinting at the up leg’s potential to stretch higher. Buyers are likely to continue streaming in as the buy signal stays intact. Perhaps a break above $0.3 will reinforce the bulls’ presence.
DOGE/USD Daily Chart
IntoTheBlock also shows a declining trend in the network growth metric. The number of newly-created addresses on the protocol topped out at 30,000 on August 16, based on a 30-day trailing average. However, only 22,900 addresses joined the Dogecoin network on August 22, which is a 24 drop.
Dogecoin Network Growth Model
Declining network growth is often considered a bearish signal. It infers that the project is losing traction in mainstream adoption. With demand for DOGE faltering, it becomes challenging for bulls to sustain the uptrend.