Dogecoin price struggles at $0.09 amid surge in profitable addresses! Is DOGE price ready to skyrocket?
The meme coin market is showing signs of recovery as Dogecoin breaks above resistance levels and attracts new buying interest. As a result, numerous on-chain indicators have switched to a bullish outlook, suggesting a potential rise in DOGE price in the coming hours. Nevertheless, some holders are steadily liquidating their holdings near recent market highs, raising concerns about the possibility of a sharp decline below the monthly support channel.
Opportunities can be found in profitable addresses
Dogecoin, the dog-themed meme cryptocurrency, soared to weekly highs after a new “XPayments” account was introduced on X (formerly Twitter), gaining over 100,000 followers. The XPayments account has not yet made a single post and
As reported by IntoTheBlock, the number of profitable addresses increased significantly after the price of Dogecoin rose above $0.085. These profitable addresses currently account for 3.5 million, or 64.8% of the total, and Dogecoin’s continued low volatility makes it likely that selling activity from these holders will increase.
As a result, Dogecoin is struggling to surpass the $0.09 threshold as approximately $400,000 worth of short positions have been liquidated in the last 24 hours. These liquidation inflows have strengthened resistance levels, intensifying the ongoing struggle for DOGE price at this point.
There are currently around 788,000 addresses holding over 37 billion DOGE near this level, and if these positions are suddenly repudiated or downgraded, it could potentially lead to a long squeeze, sending the price of DOGE plummeting to pre-surge levels.
Elon Musk’s “every app” strategy for X could introduce Dogecoin for peer-to-peer payments by mid-2024. Musk has teased DOGE payments for Twitter Blue in April 2023, and Tesla is already accepting DOGE for product purchases.
What’s next for DOGE pricing?
Dogecoin price attempted to surge above $0.09 but suffered a strong rejection as selling pressure grew. However, buyers remain confident by defending against a decline below the $0.081 moving average. At the time of writing, DOGE is trading at $0.0845, down more than 2.8% from yesterday’s rate.
A stable 20-day EMA and RSI above the midline indicate a balance between supply and demand. If the price reverses from current levels or surges above the 20-day EMA, the bulls will once again try to push DOGE price above $0.09. A successful move could send the price above $0.1.
On the bearish side, if the price falls below the EMA trend line, it means the bulls’ holding power is weakening. In this scenario, bears are likely to try to push the price towards the important support zone between $0.07 and $0.075.