Dogecoin Bullish Cues Could Set Up The Token’s Date With 74% Gains

NOIDA (CoinChapter.com)— DOGE price continued to crab after June 25’s 9% spike failed to materialize into anything tangible. Despite the bearish price action, Dogecoin has bullish cues coming from market sentiment and technical setups.

DOGE price rebounded off a multi-month descending trendline support on June 25. However, the uptrend failed to last after the token dropped nearly 4.5% on June 26.

Moreover, the token’s 20-day EMA ( red wave) and 200-day EMA (green wave) are close to forming a death cross, a bearish pattern that signifies negative market sentiment.

Should the downtrend continue, DOGE price could drop to the trendline support near $0.118. Breaching the immediate support could attract more selling pressure, forcing the memecoin‘s price to test the support near $0.11.

On the other hand, a Dogecoin price rally from here would see the token’s price rise to the resistance near $0.13. Flipping above the resistance level could help DOGE price target the 50-day EMA (purple wave) and 100-day EMA (blue wave) resistance confluence near $0.144.

The RSI for DOGE remained neutral for the token, with a reading of 36.98 on the daily charts.

Dogecoin Bullish Cues From Holder Distribution, But Hold Your Horses

Recent data on the global in/out of the money (IOM) positions for Dogecoin reveal a significant number of holders in profit. Currently, 75.11% of DOGE addresses, or 4.77 million addresses, are “in the money.”

In contrast, 23.18%, or 1.47 million addresses, are “out of the money,” with 1.71% or 108.31k addresses “at the money.” This indicates strong profitability among holders, which can be bullish but also raises the risk of profit-taking.

To recall, “in the Money” means the current price is higher than the purchase price, while “out of the money” means the current price is lower than the purchase price. “At the Money” means the current price equals the purchase price.

Dogecoin supply distribution reveals another bullish cue for the token. Addresses holding 1 million to 10 million DOGE show stable patterns. Medium to large holders, with 10 million to 100 million DOGE, are gradually accumulating.

Large holders, owning 100 million to 1 billion DOGE, show fluctuations but a trend of slight accumulation. The largest holders, with over 1 billion DOGE, maintain stable holdings, indicating confidence.

While the data suggests a more or less bullish outlook for Dogecoin, investors should exercise caution as potential profit-taking remains a risk.

DOGE Price Forms Bullish Setup

Meanwhile, another bullish cue for DOGE price comes from a technical setup called the ‘falling wedge.’

A falling wedge pattern features a pair of converging trend lines connecting lower highs and lower lows, forming a narrowing shape that slopes downward.

The pattern indicates that an asset’s price while consolidating in a downtrend, is losing bearish momentum and preparing for a potential reversal to the upside. Typically, a breakout occurs upward, in line with the overall trend.

To estimate the price target, traders measure the widest part of the wedge at the beginning and project this distance upward from the breakout point. A higher trading volume during the breakout confirms the reversal’s reliability, indicating stronger market conviction and a higher likelihood of success.

According to the rules of technical analysis, DOGE price might rally over 75% from its current level to reach the pattern’s projected target near $0.216.