The crypto space appears to have experienced a slight pullback after undergoing a massive upswing in the early trading hours. While the market cap continues to hover above $850 billion, one wrong move may drag the price of popular altcoins like DOGE, lower. Dogecoin price has been maintaining a strong uptrend for the past 7 days, which is believed to get reversed very soon.
The dogecoin price rally is largely believed to be more lenient on the short-term holders who constantly cause a minor bounce. This fades over time, dragging the price of DOGE to its initial levels, it traded before the rally. After remaining dormant from June and October, the November trade was slightly bullish. The trader’s focus concentrated on the asset as the price marked its lows on the crucial support at $0.07.
The price is currently hovering around the crucial resistance at 0.38 FIB levels, facing difficulties in clearing these levels.
After forming a double-bottom pattern, the DOGE price rises high and currently testing the crucial resistance at the neckline. Therefore, if the price successfully breaches these levels, then the possibility of a bullish breakout emerges. Else, the price may continue to consolidate just below this resistance for a long time frame. However, a notable breakout beyond the neckline may ignite a notable upswing beyond $0.11 but may be restricted below $0.12.
While the price continues to hover within narrow ranges, on-chain metrics display the possibility of a significant upswing soon.
- Whales continue to accumulate more DOGE over time, regardless of the price movements. The number of holders with 10,000 to 10,000,000 DOGE in their wallets has been incremental for the past few months.
- Social dominance which combines the social sentiments and engagements of the asset has been on the rise for over a month
- The DOGE miner revenue peaked during the beginning of the month which had dropped of-let, and has again raised notably
Overall, the Dogecoin(DOGE) price appears to be significantly bullish in the short term, but as the bulls get exhausted, a massive drop could be registered in no time. Therefore, the price is expected to remain consolidated until the market sentiments gear up.