Dogecoin Price Analysis: 451K Holders Eye Profits if DOGE Hit $0.12
Dogecoin price shows signs of recovery as a bullish pattern emerges on its daily chart. The asset is at the bottom of the bullish market structure, with a potential to rally 27%.
Following the recent market downturn, Doge investors rushed to dump their coins on exchanges. But since the market began recovering, exchange inflows have reduced, setting the stage for a bullish rally for the meme coin.
Dogecoin Price To Offer Reprieve
DOGE price is currently downward within a falling wedge pattern, which is typically a bullish reversal pattern. Recent candlestick formations show a strong bounce off the lower boundary of the wedge with significant volume, indicating a potential reversal.
The price movement within the falling wedge pattern suggests a corrective wave. However, the recent bounce from the lower boundary could indicate the end of a corrective wave and the beginning of a new impulsive wave.
The 50-day EMA at $0.122 and the 200-day EMA at $0.126 are above the current price, reinforcing the bearish trend. The Dogecoin price has immediate support at $0.095, near the recent low. Resistance exists at $0.1053 (the recent high) and at the 50-day EMA ($0.122).
The RSI is at 32.50, indicating that DOGE is in oversold territory and suggesting a potential price bounce. The Chaikin Money Flow (CMF) is at -0.03, showing mild selling pressure but not overly strong.
Dogecoin price prediction shows that if the price rallies and breaks above the falling wedge, it will bullish Dogecoin price in the long term, setting new price targets around $0.14, $0.17, and $0.21.
Overall, the falling wedge pattern suggests a potential reversal, especially with the increased volume and RSI in oversold levels. There are opportunities to long in the short term. However, long-term traders may want to wait for confirmation of a trend reversal.
On-Chain Metrics Support Short-Term Rally
Data from IntoTheBlocks shows Doge investors withdrawing their funds from exchanges. Exchange inflows dropped by 38.85% from $664.48 million to $426.24 million over the last day.
This follows a peak in exchange inflows, the highest in the last month, stimulated by the recent market crash.
Additionally, Dogecoin open interest slightly increased by 0.09%, signaling a recent rise in market activity. Coupled with the rising price, this may indicate the onset of rising buying pressure for the meme coin.
The anticipated 27% price rise will protect over 451,000 DOGE holders from running losses. According to IntoTheBlock, 451,560 holders bought Dogecoin between $0.10 and $0.14.
If the market conditions reverse and become overly bearish, Dogecoin exchange inflows may resume, which could signal market panic, and subsequently turn out bearish for the asset’s price.
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