Dogecoin targets $0.2 as profitable addresses hit 2-year high! Here’s what’s next for DOGE pricing:
In recent days, DOGE price has experienced a slight surge along with Bitcoin’s move towards the $43,000 level. With buying interest increasing around the current downtrend, sentiment has been set for a possible breakout of the meme coin. This momentum is supported by a number of on-chain metrics, most notably the notable increase in profitable Dogecoin addresses, which have reached their highest level in two years.
Restoring the confidence of long-term governor holders
Over the past month, Dogecoin has seen a notable increase in value by over 22%, earning the trust of meme investors. As the price of Dogecoin rose, selling pressure from holders also increased.
The IntoTheBlock chart shows significant changes in the holdings of Dogecoin miners. As of November 24, holdings were 4.67 billion Dogecoin. However, by December 15, it had decreased to 4.39 billion Dogecoin.
This indicates that in three weeks, Dogecoin miners’ reserves have plummeted by about $280 million (equivalent to about $27 million). Miners appear to be taking advantage of price increases to liquidate their holdings at peak value. This continued selling trend by miners can have a negative impact on the price, usually near resistance levels.
However, the number of highly profitable DOGE wallets has steadily increased. According to the data, about 3.6 million, or 70%, of all addresses are profitable, which is the highest figure in about two and a half years. This suggests that interest in Dogecoin is growing. According to the analysis, this surge could fuel further gains for Dogecoin in the coming weeks as increased ‘hodling’ sentiment creates buying demand.
However, if miners begin another selloff from the peak around $0.1, the Dogecoin price could crash and trigger a decline, delaying hopes for further upside.
What’s next for DOGE pricing?
Dogecoin recently rebounded from a low of $0.91 as buyers showed confidence nearing the pullback. But buyers are struggling to push the price above $0.10. Currently, Dogecoin price is trading at $0.095, up over 0.9% from yesterday.
Currently, sellers are trying to drive the price down below the 20-day EMA. If this is successful, selling pressure will likely intensify and push DOGE price towards the channel support at $0.9. This level may provide some support, but a breach could push the price further down to $0.07.
The current upward trend of both moving averages and the Relative Strength Index (RSI) being in favorable territory suggest that buyers have the upper hand. A break above the channel resistance would point the price towards $0.11. Additionally, a surge above $0.12-$0.14 could cause the price to consolidate into the $0.2 bullish area.