The digital currency Dogecoin [DOGE] recently surpassed a notable Relative Strength Index (RSI) threshold, signaling a positive direction. Nevertheless, despite this encouraging sign, various indicators suggest that DOGE needs a more significant push to solidify gains or advance further.
Exploring Dogecoin’s Significant Fibonacci Levels
Presently valued at $0.108, down by 1.77%, Dogecoin is displaying a minor downward trend in the near term. The 50-day simple moving average (in yellow) stands at $0.1023, while the 200-day moving average (in blue) is at $0.1371.
Trading below both moving averages indicates a bearish long-term trajectory for Dogecoin.
Pivotal Fibonacci levels outline the current price near the 0% retracement mark of $0.11087, functioning as initial resistance.
The subsequent substantial resistance level is located at the 23.6% Fibonacci retracement point of $0.11796, with support levels at $0.09230 (38.2% level) and $0.08084 (100% retracement).
If Dogecoin manages to exceed the 50-day moving average and breach the $0.11087 resistance point, its next target could be the 23.6% retracement level at $0.11796.
A sustained breakthrough beyond this level would confirm a shift in momentum, aiming for the subsequent resistance at $0.12943 (61.8% retracement). Generally, DOGE is currently in a consolidation phase and might surpass prevailing resistance thresholds with adequate momentum.
Evaluating Dogecoin’s Trading Volume Potential
Based on CoinMarketCap statistics, Dogecoin’s market capitalization hovers around $15.7 billion. In the last seven days, its value has risen by more than 2%, marking the lowest growth among the prominent meme-based cryptocurrencies.
Further investigation reveals that the trading volume stands at approximately $506 million presently, with reduced activity in the last 24 hours.
While weekends typically witness decreased trading activities, Dogecoin will necessitate a substantial surge in volume to surpass the subsequent Fibonacci resistance level.
Declining Activity in Active Addresses
Another critical metric influencing Dogecoin’s potential price surge is the count of daily active addresses. Despite recent rallying efforts, the number of daily active addresses has not mirrored the same level of positivity.
There has been a modest drop in this metric over the past three days.
Data depicts that daily active addresses numbered around 45,000 between September 19th and 20th. However, by September 21st, the count had dwindled to roughly 43,000.