Dogecoin (DOGE) price has finally turned in gains as the $0.06 support holds its stance, but can a real reversal happen?
The global cryptocurrency market cap surged back above $945 billion after a 3.34% surge in the last day. During this time, altcoins took the lead in terms of market gains. XRP and Dogecoin in particular have managed to turn a profit after prolonged price declines.
DOGE’s gains of 4.5% on the daily chart weren’t massive compared to some of its altcoin peers, but changes in certain long-term technicals and on-chain signals gave way to higher social anticipation among DOGE HODLers.
DOGE Breaking through long-term price barriers
DOGE price has been making lower lows on the daily chart since September 13th. Before that, the meme token managed to generate occasional profits due to the short-term upside of the larger market or high social expectation.
In the early hours of trading on September 23, DOGE recorded its first higher low after a long downtrend, suggesting a reversal from the $0.057 support level.
Dogecoin price plunged over 30% in the second half of August and recorded another 12% drop between September 3rd and September 20th after being rejected at the $0.065 resistance.
DOGE/USDT chart from TradingView
For the last week, DOGE formed a double bottom and managed to clear the crucial $0.06 resistance.
whales to the rescue
A look at DOGE-HODLers showed that the number of addresses with between 100 million and 1 billion DOGE increased by 5.13% over the past week.
Number of addresses with 100M-1B DOGE | Source: IntoTheBlock
In addition, given the improving technical conditions, around six new whales have joined the network, collecting around 620 million DOGE over the same period.
DOGE balance sheet by holdings | Source: IntoTheBlock
While DOGE whales appeared to be coming to the meme coin’s rescue, there were still some supply barriers that DOGE needed to remove before a reversal could be called true.
Despite the increasing buying pressure, IntoTheBlock’s IOMAP emphasized that Dogecoin faces strong resistance at $0.069, where over 86,000 addresses hold over 42 billion DOGE.
DOGE In/Out Funding Source: IntoTheBlock
Additionally, on the shorter-term charts (1 hour and 4 hours), DOGE’s RSI had started to show easing buying pressure as the price plateaued around the $0.061 level.
In the coming days, a crucial daily close above the $0.069 level could trigger a breakout. However, if the bears take control, DOGE might revisit the $0.057 level.
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