Dogecoin gave back some of its recent gains, falling below $0.1050 against the US Dollar. It is now holding support at $0.10 and could be setting up for another rally.
The price began a downward correction after failing to stay above $0.1150, dropping below $0.1100 and $0.1080. It briefly dipped under $0.10 before buyers stepped in. Currently, DOGE is trading below $0.1050 and the 100-hour simple moving average, while forming a base above the $0.10 level.
On the hourly chart, the price is moving within a declining channel, with resistance near $0.1020. The immediate hurdle is at this channel resistance, followed by major resistance levels at $0.1070 and $0.1120. A sustained close above $0.1120 could push the price toward $0.1150, with further targets at $0.1180 and $0.120.
If the price fails to break above $0.1020, it could resume its decline. Initial support sits at $0.10, with stronger support near $0.0945 and a main support level at $0.0920. A break below $0.0920 might lead to further losses toward $0.0875 or even $0.0865.
Technical Indicators:
– Hourly MACD: Losing momentum in bearish territory.
– Hourly RSI: Currently above the 50 level.
– Major Support Levels: $0.1000, $0.0945.
– Major Resistance Levels: $0.1020, $0.1070.
Frequently Asked Questions
Dogecoin Accumulation Potential Breakout FAQs
Beginner Questions
What does accumulation mean in crypto
Accumulation is when investors buy and hold an asset over time often in large quantities instead of trading it frequently It suggests growing confidence and can reduce the available supply for sale
What is a breakout in trading
A breakout happens when an assets price moves above a specific resistance level or below a support level often with increased trading volume It can signal the start of a new stronger price trend
Why is Dogecoin showing signs of accumulation
Onchain data and trading patterns suggest that larger investors or whales are buying and holding DOGE steadily rather than selling it off quickly
Is accumulation a guaranteed sign that the price will go up
No its not a guarantee While accumulation often precedes a price increase by reducing sell pressure its just one indicator Market sentiment news and broader crypto trends also play major roles
How can I check if Dogecoin is being accumulated
You can look at onchain metrics like exchange outflow large wallet growth and a decreasing supply on exchanges These are often tracked by analytics sites like IntoTheBlock or Santiment
Intermediate Advanced Questions
What specific onchain metrics indicate Dogecoin accumulation
Key metrics include
Exchange Netflow Negative netflow is a strong sign
Whale Transaction Count A rise in large transactions
HODLer Waves An increase in the percentage of supply held in wallets for 1 years
Supply on Exchanges A declining percentage of the total DOGE supply held on trading platforms
Could this just be whales preparing to sell
Yes thats a key risk Accumulation can look similar to distribution early on The difference is often revealed later accumulation leads to a breakout on high volume while distribution leads to a price drop after the asset is sold into any rally Monitoring if coins eventually flow back to exchanges is crucial
What price level would confirm a breakout for Dogecoin
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