Dogecoin price shows signs of incoming buying pressure that could be the key in triggering another run-up
Dogecoin price shows signs of impending buying pressure that could be the key to triggering another rally to retest previously tagged levels. This move is important as breaking the barrier could catalyze a further upward move.
Dogecoin price to get back its steps back higher
Dogecoin price has plummeted 85% from its all-time high and is currently hovering around $0.14. From September 29, 2021, to March 23, it formed three distinctive higher highs and lower lows that would indicate a falling wedge pattern when connected using trend lines.
This technical formation forecasts a 34% gain, obtained by adding the distance between the first swing high and the swing low to the breakout point. The breakout mentioned above took place on March 24 at around $0.130, revealing a target of $0.178.
While the initial move after the breakout and retest was attractive, it broke the $0.161 barrier and tagged the first target at $1.78. However, it was impossible to increase further as investors began to record profits, and the market structure for the significant cryptocurrency deteriorated. As a result, DOGE triggered its correction to 0.13, forming a base around this level.
The resurgence of buying pressure is pushing the meme coin-back above $0.144 in an attempt to retest $0.178. This rally could produce a 23% gain, but the cap mentioned above flip could extend the rally to $0.216, bringing the total gain to 50%.
Adding a breath of fresh air to Dogecoin’s bullish outlook is the 365-day Market Value to Real Value (MVRV) model. As mentioned in previous articles, this index is used to gauge the average profit/loss of investors who have purchased DOGE tokens over the past year.
A value below -10% indicates that short-term holders are selling at a loss and is typically where long-term holders tend to accumulate. Therefore, a value below -10% is often referred to as an “opportunity zone” since the risk of a sell-off is less.
As for DOGE, the indicator has been below zero since Q4 2021 and is currently at -38%, indicating that many investors are underwater. As a result, long-term investors can purchase DOGE tokens at a discount that further elevates the price of the meme coin and triggers a rapid rally.
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