May 13, 2022

Dogecoin Flipping into Demand Zone, Possible Outcome

A shocking development was recently recorded from DOGE after breaking out from its bullish trend on the 23rd of March. After the alleged breakout, there were reports that it was merely fluctuations in the coin value.

Moreover, the coin has proved otherwise after it was trapped at a certain point, consolidating, giving mere speculations of an explosion. Despite all on-chain metrics, the rate of holding of the coin has been on the increase. 

Indications of a Higher Trend

Judging from the price trend of Dogecoin from the 29th of September, 2021, to the 23rd of March, 2022, the coin has created different unique highs and lows after experiencing a bearish trend from its recent ATH of $0.77. The crash was about 85%, which formed a crashing wedge pattern connecting all the profit from price movements in the time towards a bearish downward trajectory. 

The situation’s outcome was speculated to cause an approximate 35% uptrend, derived from the approximate distance between the crest and trough swing. The breaking point and the approximate displacement may attain a likely target price of $0.177. Doge price market experienced another bearish trend on the 24th of March after it passed through its breaking upward trend line at $0.30 and plunged the market price into indecisiveness. 

A bullish trend affected the movement as the DOGE coin soared above the normal approximate fifty and hundred days SMA with a price of $0.133 to $0.137.

DOGE/USD price chart. Source: TradiungView

The plus tick (increase in price)  and enormous selling hurdles in the coin market will function as an upheld resistance that causes an upward projection in the coin price. This period is the perfect time for investors to keep a close eye on, as the DOGE prices may explode. 

A bearish breakout may likely push the coin price to $0.179, an approximate 28% raise, which collides with the two-hundred days SMA (Simple Moving Averages). Doge price may experience a massive uptrend with these barriers. 

If DOGE buyers can surmount the barriers, the added momentum instigates a massive and extensive upward projection of about $0.216. This action may likely amount to an approximate gain of 51%. 

This chart proves the distribution supply and recent run-up chart of the coin. This index has helped keep track of all the recent trends in the DOGE market.  For the past few days, DOGE wallets that hold over 12 million of the coin have topped up to about $77.92 and $81.87 between the 8th and 20th of April. The speculated uptick indicates investors’ interest and the upcoming bullish market.