New Delhi: The 2021 cryptocurrency season has been good for almost all coins and Dogecoin is one of them. Made to make fun of Bitcoin with a friendly branding, DOGE aims to be a supportive introduction to the cryptocurrency. While it doesn’t even come close to Bitcoin, it jumped from more than $ 1 billion to $ 47 billion in early January and still holds a market cap of $ 36 billion.
Dogecoin is down roughly 21% in the past 2 weeks, suggesting a trend reversal is imminent. DOGE is in a support cluster that aims to break the barriers of resistance.
The main reason for an uptrend from here is the demand zone, which extends from $ 0.262 to $ 0.281. Those $ 0.262 to $ 0.281 were a notable barrier of resistance and a massive level of support for the coin.
Interested traders can expect bullish trends that will make Dogecoin the buyer’s comeback. Bulls will encounter the $ 0.328 price level as the resistance limit, followed by a retest of $ 0.367, a rally of nearly 34% from the current price.
According to reports, 25,220 addresses bought 3.15 billion DOGE at an average price of $ 0.296. This is the only cluster preventing DOGE from rising, but still this area is relatively small compared to the one surrounding it.
Hence, a sharp increase in buying pressure will easily break these barriers to support the supply zone. According to experts, technical data and transaction data are now pointing to an upward trend and the number of new addresses joining the DOGE network has decreased slightly.
The data shows a 16% decrease from 23,830 to around 20,000 users, but it’s still not a huge number to spoil the bullish outlook. A jump to $ 0.367 is still believable, and if the bears break the lower trendline of this $ 0.262 demand barrier, it means sellers are in control.
However, this can also indicate that the price of DOGE can fall significantly lower. A break through the USD 0.240 support level will break the bullish situation and trigger a decline to USD 0.230.