Surging beyond the critical resistance at $0.111, Dogecoin [DOGE] has now surpassed a key level where more than 62,270 addresses collectively hold over 36 billion DOGE.
This breakout has reignited optimism among traders, speculating that DOGE may be gearing up for a significant upward trend.
The current focus is on whether Dogecoin can sustain this momentum and potentially hit the $0.150 milestone, a pivotal point that could spur a major price surge.
As of the latest update, Dogecoin is trading at $0.1138, indicating a 3.58% increase over the past 24 hours. The price has managed to consistently remain above the $0.111 mark, seen by many as a positive indicator.
However, technical signals like the Bollinger Bands (BB) on the 4-hour chart are hinting at a potential overbought situation for DOGE, with its current position near the upper band around $0.11349.
Should the price hold firm or push higher from this level, it could pave the way for a breakthrough towards $0.150. Conversely, a failure to sustain momentum could lead to a slowdown in the rally.
Are the underlying network fundamentals robust enough?
The strength of network activity is crucial in supporting price movements, and Dogecoin has witnessed 46,189 active addresses in the past 24 hours.
While this figure represents steady engagement, it falls short of the levels observed during previous significant price surges.
A surge in active addresses, though, could serve as a substantial boost to DOGE’s price action, potentially instilling confidence in traders.
Thus, any increase in network activity is likely to fuel positive sentiment among traders, given the historical correlation between user engagement and price escalations.
Liquidations as indicators of market sentiment
The recent surge in Dogecoin’s price has triggered notable liquidation of short positions, with a recorded $1.05 million liquidated on September 26th, primarily across major exchanges such as Binance and OKX.
These liquidations signal the exit of bearish traders from their positions, often providing additional momentum to a digital asset’s upward trajectory.
Consequently, the liquidation of short positions enhances the prospects of an enduring bullish breakout in the market.
Rising Open Interest points to increasing market attention
The Open Interest in Dogecoin has surged by 11.16%, totaling $587.53 million. This rise in Open Interest signifies a growing participation of traders and their confidence in DOGE’s price outlook.
Therefore, with an expanding trader base actively engaging with the asset, any forthcoming price variations could be amplified, potentially propelling DOGE to higher levels.
Dogecoin has successfully breached a critical resistance level and is displaying strong indications of an imminent breakout.
With a rising Open Interest, significant liquidation of short positions, and a growing focus from traders, DOGE seems poised for a bullish run. Nonetheless, a surge in network activity is essential to cement this positive momentum.