Dogecoin surged nearly 10% this week, demonstrating resilience amid ongoing economic pressures. While many altcoins faced adverse effects from recent news, DOGE successfully climbed back above $0.2058 for the first time in almost two weeks.
Dogecoin Surges Nearly 10%, What is Next for DOGE?
Dogecoin (DOGE) reached a near two-week high at $0.20585 on Wednesday, March 26. Over the past week, DOGE experienced a significant rally of nearly 10%, even as other altcoins struggled amid ongoing economic challenges in the U.S.
The leading meme coin in the crypto market could continue its upward trend, aiming for a potential gain of nearly 11%, with resistance anticipated at the price range between $0.24040 and $0.21465.
The upper boundary of this range at $0.24040 represents a critical resistance point for DOGE, approximately 24% above its current pricing.
Key momentum indicators, including the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), suggest a bullish outlook for Dogecoin. The RSI is currently at 52, indicating bullish sentiment, while the MACD shows positive momentum with green histogram bars above the neutral line.
Dogecoin On-Chain Analysis
Recent on-chain metrics reveal an increasing number of DOGE holders, a trend that, if continued, may enhance the coin’s appeal among traders. Additionally, the network’s realized profit/loss metric indicates that existing DOGE holders have seen minor profits. Typically, large-scale profit-taking could generate selling pressure, posing risks for the price.
This metric supports a positive outlook for DOGE in the upcoming week. The active address count for Dogecoin has remained stable since mid-March, further signifying its resilience.
DOGE Derivatives Analysis and Price Outlook
Analysis of Dogecoin’s derivatives across exchanges reveals a recovery in open interest, now at $1.98 billion as DOGE trades around $0.19. Recent data indicates a steady increase in open interest, further supporting bullish sentiment.
On March 27, the total liquidations amounted to $4.29 million in long positions. Buyers are advised to monitor liquidation trends closely prior to making new derivatives investments.
The long/short ratio among top exchanges indicates that traders are favoring a price increase for DOGE, with ratios exceeding 1. This further suggests a collective bullish sentiment among derivatives traders.
When combining technical analysis with derivatives data, it appears likely that Dogecoin could test resistance at $0.21465 in the coming week, should spot prices follow the trend indicated by derivative activities.
What Lies Ahead for DOGE?
Wallets containing between 1 million and 10 million DOGE tokens have seen consistent additions between March 10 and 27, while larger wallets have maintained stable holdings during this period. Accumulation in this key holder segment reinforces demand for DOGE and supports a bullish forecast.
Dogecoin ETF Developments and Other Catalysts
Holders of DOGE are closely monitoring the progress of Bitwise’s Dogecoin ETF application with the SEC, which aims to establish DOGE as a legitimate investment option for institutional investors. Despite recent downturns caused by Bitcoin fluctuations, Dogecoin has shown the ability to rebound, hinting at a potential end to its prolonged downward trend.
Additional catalysts for Dogecoin include advancements in cryptocurrency regulations, progress on stablecoin legislation, and growing interest among large investors and whales.
Disclosure: This article is for informational purposes only and does not constitute investment advice.
