Dogecoin Price Prediction: DOGE Taps Into New Lifeblood While Bulls Gaze At $0.3

Last Updated August 9th 2021
2 Min Read
  • Dogecoin's price settles above $0.23 after losing ground from August highs at $0.28.
  • The path with the slightest resistance seems upward, especially with several critical barriers out of the way.
  • A spike in Dogecoin's network activity hints at amplified speculation for gains above $0.3.

Dogecoin joined other cryptocurrencies over the weekend to post incredible gains from levels marginally under $0.2. The breakout first cemented the position above $0.2, a move that called more buyers into the market.

As reported next week, DOGE's consolidation of around $0.2 had paralyzed network activity, with the number of addresses interacting on the network remaining relatively unchanged for some time.

Subsequently, a confirmed breakout past $0.2 allowed bulls to tap into the technical lifeblood of Dogecoin. With the consolidation exploding in gains toward $0.3, a monthly high was traded at $0.28. However,  a correction ensued, preventing the bullish leg from stretching to $0.3.

Dogecoin Price Uptrend Intact

Dogecoin is trading at $0.24 just several hours after testing support at $0.23. Recovery seems to be underway, whereby buyers look forward to DOGE trading above $0.3. A break above $0.25 will pave the way for a trajectory to the coveted level.

Meanwhile, the Moving Average Convergence Divergence (MACD) highlights that bulls have the upper hand. This comes after a buy signal was presented amid the initial rally to $0.28. if the 12-day EMA maintains the position above the 26-day EMA, Dogecoin gains traction to close the day above $0.3.

Although the Relative Strength Index (RSI) has retreated into the neutral zone, support at 64 shows that buyers must have secured formidable support for Dogecoin and are ready to lift the token further up. The RSI follows the trend of an asset and measures the strength of either bulls or bears. An upswing toward the overbought area will affirm the bulls' position in the market.

IntoTheBlock's "Daily Active Addresses" model shows that the number of addresses interacting on the Dogecoin network has significantly shot up in the last few days. Following a 30-day low of 48,000 addresses per day, recorded on July 20, 63,000 addresses transaction on the blockchain on August 8.

Dogecoin Active Addresses Breakout

 Dogecoin Active Addresses Breakout

An increase in the number of addresses interacting on the network shows that investor speculation is rising, which is considered a bullish signal for Dogecoin. Therefore, the ongoing bullish control is expected to continue as Dogecoin gains traction toward $0.3.

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