Over the last 24 hours, Dogecoin (DOGE) experienced a rapid surge of 16.93%. This significant movement occurred after the coin tested and held strong at the $0.14080 support level, propelling it towards a crucial resistance point at $0.16460.
Currently, DOGE is trading at $0.1654 with a daily trading volume of $4.37 billion. The circulating supply stands at 150 billion DOGE, and the market cap is valued at $24.24 billion.
As Dogecoin nears the resistance at $0.16460, its next target lies at a mid-range level of $0.20745. A successful breach of this resistance could signal further upward momentum for its price.
In case DOGE fails to surpass the $0.16460 level, it might retest support at $0.14080. Further downside movement could test the lower support level around $0.12650. While the mid-range target remains achievable, breaking above $0.16460 is crucial for any substantial rally.
Technical Indicators Point to Overbought Conditions
Recent price action has pushed Dogecoin above the upper Bollinger Band, indicating strong bullish pressure. However, this may suggest that the coin is currently overbought. This situation often leads to short-term pullbacks or consolidation phases.
In case of a dip, the middle Bollinger Band at $0.1328 could serve as a support level. The MACD indicator shows positive momentum, with both the MACD line and signal line on an upward trajectory. Additionally, the histogram’s growth indicates heightened buying activity.
A positive MACD reading suggests a sustained bullish trend, which could potentially drive DOGE to higher levels.
On the other hand, the Relative Strength Index (RSI) stands at 75.79 at the time of writing, hinting at an overbought situation for DOGE. While this might indicate a short-term correction, elevated RSI levels are common during strong uptrends.
If the RSI continues to hold at high levels, Dogecoin may target the next resistance level at $0.18.
Analysis of DOGE’s On-Chain Metrics
The Market Value to Realized Value (MVRV) Ratio for DOGE has risen by 4.66% in the last 24 hours, reaching around the 1.5 mark. This metric helps evaluate profitability for holders.
A higher MVRV ratio implies more holders are profitable, potentially leading to selling pressure as traders take profits. Typically, an MVRV above 2.0 indicates increased selling activity.
Currently, the MVRV ratio is below its 52-week high of 2.31, suggesting room for further gains before significant selling pressure emerges. However, a continued rise in MVRV could increase the risk of profit-taking and downward price pressure.
Increase in Whale Activity
In the past 24 hours, large transactions involving 15.5 billion DOGE have been recorded, marking the highest level in October.
This surge in activity indicates heightened interest from whales and institutional investors, who often impact price movements significantly. Increased whale activity may signal accumulation, distribution, or preparation for significant market shifts.
Prior to this spike, large transaction volumes had dropped to 7.52 billion DOGE, making the recent increase quite notable.