- Dogecoin enters price discovery as bulls focus on liftoff to $2.
- DOGE’s majestic uptrend cemented by an improving network growth.
- Overbought conditions could culminate in a correction under $0.1.
Dogecoin is up a whopping 55% over the last 24 hours and 5.5% on an hourly basis. The Meme Coin triggered massive buy orders on breaking the resistances at $0.08 and $0.1. At the time of writing, DOGE teeters at $0.12 amid a persistent push by bulls to elevate the crypto past $0.2.
Dogecoin Network Growth Improves
IntoTheBlock’s “Daily Active Addresses” on-chain model brings to light a continuous increase in the number of addresses joining the protocol. From a 30-day low of 31,400, the newly-created addresses have risen nearly 60,000. Note that such an increase shows investor sentiment is growing in addition to intense speculation.
Dogecoin Network Growth
Similar growth is seen with the active addresses on the network. Speculation is a product of increased network activity. Therefore, as interaction surges, Dogecoin is bound to extend the winning streak.
Dogecoin Outshines Technical Pattern Breakout
The daily chart shows the formation of a descending triangle. This pattern usually leads to a downtrend, but it results in bullish breakouts in some instances. A recent break above the triangle’s hypotenuse eyed 100% liftoff, but Dogecoin has surpassed the target to exchange hands at $0.126.
Other technical indicators, such as the Moving Average Convergence Divergence (MACD), reinforces the bullish outlook, thus validating the anticipated roll to $0.2. The MACD has confirmed that the trend may longer dwell in the bullish hands by revealing a wide divergence from the signal line.
DOGE/USD Daily Chart
It is worth keeping in mind that the Relative Strength Index has also reinforced the bulls’ influence in the market. This trend strength indicator is significantly up in the overbought region. As long as the trend stays upward, the upswing to $0.2 will be achievable.
Looking at the Other Side of the Fence
Dogecoin is prone to pumping-and-dumping; thus, the uptrend is always questionable. Note that the RSI is overbought, which means that a correction could be around the corner. Higher support needs to be established to ensure that the uptrend is sustained. On the downside, support is anticipated at $0.1, $0.07 and $0.05.