Dogecoin (DOGE), the well-known memecoin, has shown resilience amid extreme bearish trends, defending the local support at $0.12. The cryptocurrency has been trading within an expanding rising channel and recently triggered a bullish rebound before reaching the lower support. This rebound has paved the way for DOGE to potentially rise towards the upper resistance zone between $0.169 and $0.1845, with the possibility of reaching $0.2 in a healthy upswing.
DOGE Recent Market Activity and Demand
New demand for DOGE has surged significantly. According to IntoTheBlock, the coin recorded a major spike in new demand on May 2, with 28,000 new addresses created to trade DOGE, a 102% increase from the monthly low set on April 29. The increased demand also led to a rally in daily active addresses, with Santiment reporting a 27% increase in the past seven days alone.
Dogecoin activity is spiking!
The number of new Dogecoin addresses has increased sharply this week.
Over 28k new addresses were created yesterday, a 102% increase from the monthly low set on Monday pic.twitter.com/SlMLxvwWAo
— IntoTheBlock (@intotheblock) May 3, 2024
Increased network activity typically precedes a price rally, but DOGE has not experienced a significant price jump despite the sustained demand. Over the past week, DOGE saw a modest 2% appreciation, most of it occurring in the last 24 hours. This minor rally mirrors the general market downturn during the period, which saw the total cryptocurrency market capitalization fall below $2.3 trillion before rebounding.
Dogecoin (DOGE) Price Analysis: Poised for Further Gains
Dogecoin (DOGE) is exhibiting promising signs for a potential bullish run, as indicated by recent technical and fundamental indicators. The cryptocurrency’s price has rebounded within an expanding rising channel, currently trading around $0.1584129, reflecting increased network activity and positive sentiment. This favorable outlook is strengthened by the potential to breach the key resistance levels around $0.169 to $0.1845, and if this bullish momentum continues, DOGE could potentially reach or exceed $0.2, signaling renewed investor interest.
The 20, 50, 100, and 200-period Exponential Moving Averages (EMA) provide a key perspective on DOGE’s trend. The price is currently above the 20-day and 50-day EMA, indicating short-term bullish momentum, but still faces resistance from the 100-day and 200-day EMA, suggesting that the upward movement could encounter challenges beyond these levels.
The RSI at 65.83 is approaching overbought territory, which could indicate a short-term correction before a sustained breakout. However, the RSI trend since late April indicates positive momentum and a strong potential for further growth.The Moving Average Convergence Divergence (MACD) line is above the signal line, which confirms a bullish trend. The MACD histogram also shows positive momentum, supporting the possibility of further gains.
DOGE’s market activity reflects a positive sentiment, with bulls actively testing key resistance levels. The potential for a breakout above $0.169 could set the stage for a rally towards $0.2 and beyond, provided the bulls maintain their momentum and avoid falling into overbought conditions.
