Dogecoin (DOGE) The price finally managed to get rid of the downtrend with a recent rise and continues to give signals that the rise will continue. While DOGE is facing temporary slowdowns, investors can expect the bulls to return as soon as possible.
Dogecoin pricehas formed a series of lower peaks as it has lost an average of 40% over the last 40 days. These swing points can be connected using trend lines; this downtrend line prevented DOGE from rising.
On March 18, DOGE experienced an increase in purchasing pressure, resulting in a breakout. Since then, Dogecoin price has experienced a pullback but remains bullish. Therefore, investors can expect the famous meme coin to continue its uptrend.
Meme coin will face a hurdle at $0.140 first and if the price can break this hurdle, a test of the $0.150 resistance will be possible. When we look at the general picture, this move can be completed with an increase of approximately 27% from its current levels.
One of the most important indicators showing that DOGE price remains in an uptrend is IntoTheBlock’s GIOM model. It reveals that the next cluster of resistances on the index is relatively strong, showing a spread from $0.126 to $0.155.
Currently, 250,000 addresses have lost 25.15 billion DOGE tokens, and if the price approaches this cluster, there could be massive selling pressure from the losing investors. Therefore, investments can expect this level to be exceeded and to create a peak at these levels.
While the bullish view makes sense in terms of transaction data, the whales don’t seem to be interested in the Dogecoin price. Large trades of $100,000 or more, representing the investment interest of high-net-worth investors, have fallen from 1,800 to 688 in the past three months. This 30% drop indicates that these buyers are not excited to buy DOGE and the uptrend may face problems due to lack of momentum.
If DOGE still shows a four-hour candlestick below $0.106, it will have created a lower bottom and invalidate the bullish thesis for Dogecoin. In such a scenario, DOGE could drop 30% and revisit the $0.074 support level.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.