According to the crypto analyst, two on-chain metrics will drive Dogecoin (DOGE)’s next move. Dogecoin continues to consolidate in a narrow range that has narrowed over time. According to analyst Ali Martinez, a daily candlestick closing outside the $0.26 to $0.17 price range could set its course, and DOGE’s price history suggests the bulls could gain the upper hand. Details cryptocoin.com‘in.
Metrics for Dogecoin
Dogecoin seems to be repeating the price action it has experienced since the beginning of the year. While the buying pressure isn’t high enough for DOGE to explode, a few on-chain metrics could help predict the coin’s next major price action. The original meme cryptocurrency had a memorable year. It hit an all-time high of $0.74 in early May during a period of market-wide frenzy. The crypto has an annual return of 4,500% despite the low volatility it has seen over the past few months.
According to analyst Ali Martinez, DOGE’s daily chart shows that it generally consolidates for a long time before breaking out. These periods of recession are characterized by the formation of descending triangles that result in exponential price movements. For example, Dogecoin developed this type of technical pattern for 26 days before surging 936% at the end of January. Similar price action occurred in early April after the asset had been consolidated for two months.
Now, the tenth largest cryptocurrency by market cap appears to be developing the same bullish continuation pattern, according to analyst Ali Martinez. Dogecoin’s price has hit a series of lows since early May, with the $0.17 support level preventing it from making a steep correction. Slicing the hypotenuse of the descending triangle at $0.26 could initiate an exponential price action towards all-time highs.
bull signs to watch
Some of the most significant price movements that Dogecoin enjoyed throughout the year were supported by the support of celebrities. This behavior indicates that increased individual attention is required for DOGE to progress further. Still, some key on-chain metrics can help determine whether pressure to buy is accelerating. The number of large transactions worth more than $100,000 on the network can act as a representative of the activity of institutional players and whales. According to the analyst, a significant increase in large trades could indicate that wealthy investors are starting to position themselves for a new bull run.
Currently, 1,560 large transactions are processed on the Dogecoin network. On September 7, the number of large transactions reached 2,520; A 38% increase could indicate that whales are starting to take control of the price action. According to analyst Ali Martinez, if this metric starts recording a series of higher highs, the odds will be in favor of the bulls.
It is also very important to pay attention to the number of new daily addresses created to determine whether individual traders are joining the network. Network growth is generally considered one of the most accurate price predictors. In general, the constant increase in the number of new addresses created on a particular Blockchain causes prices to rise over time. According to analyst Ali Martinez, the addition of 22,000 new addresses per day to the Dogecoin network could mark the start of a new uptrend. Under such unique circumstances, traders should wait for a higher rise in this on-chain metric before entering any positions to confirm that buying pressure is accelerating, according to analyst Ali Martinez.
The increase in the number of large transactions and new daily addresses on the network confirms the bullish outlook, while a daily candlestick below the x-axis of the symmetrical triangle at $0.17 will invalidate it. According to analyst Ali Martinez, the trading history shows that after losing such a critical support level, DOGE will face little opposition as it drops to $0.08.
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