Dogecoin Price Could Revisit $0.1 Before Rallying 50%

Dogecoin price shows signs of a potential dip before it can continue its uptrend. The recent breakdown of a key support level suggests a further pullback is likely, providing sidelined buyers an opportunity to accumulate DOGE before the dog-themed crypto shoots higher. 

Dogecoin Price Could Retest $0.1 Soon

The crypto markets today are mostly red due to Bitcoin’s (BTC) recent correction. As a result, DOGE’s daily chart displays a range-bound structure. The nearest significant support for the DOGE price is around $0.1, where the price has previously found interested buyers. Conversely, the immediate resistance is at $0.115, marking the upper boundary of this consolidation range.

The marked “liquidity hunt” above $0.115 indicates that the Dogecoin price attempted to move higher, but selling pressure forced a retreat. This liquidity sweep may signal a fake breakout, after which the price typically retraces to retest lower levels. Therefore, investors can expect an opportunity to accumulate DOGE before the crypto attempts another breakout.

While the technicals suggest a potential retracement, on-chain metrics suggest an interest from high-net-worth individuals or whales.

Whales Interested in DOGE Price, Rally Likely

An analysis of on-chain data from IntoTheBlock shows the large transaction count increased in the last 24 hours from 122 to 296. This indicates that these large holders are interested in DOGE at the current price levels. This is a bullish outlook and hints at an increased volatile move ahead.

This premise was arrived at after a closer look at the Coinglass Liquidation Map for Dogecoin, which shows traders are overall bullish on DOGE since the cumulative Long Liquidation leverage outperformed the shorts in the weekly timeframe. This imbalance suggests that bullish sentiment is dominating the markets because traders anticipate that the Dogecoin price will rise higher after this brief correction.

Further, Dogecoin’s social dominance surged to a 5-month high, suggesting that investors are potentially searching for “Dogecoin” as a keyword on social media platforms. A spike in social dominance shows increased chatter about Dogecoin, which can attract new investors. Moreover, high social dominance can sometimes precede price increases as more investors become interested.

The surge in social dominance may have been, in part, due to Elon Musk’s statement that he would reduce almost 80% of government agencies from 428 to about 99 if he were to help in the Trump presidency under D.O.G.E.

These statistics and the whale behavior suggest that DOGE price may be in for a bit more ranging between $0.115 and $0.09, before surging to new highs. Dogecoin price forecast shows that if the meme coin reclaims $0.115 and breaks through with significant volume, it may attempt to rally toward $0.13—$0.14.

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Evans Karanja

Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.