Dogecoin’s (DOGE) price chart is flashing critical bullish signals, indicating a potential turnaround despite recent downward pressure. The 4-hour Relative Strength Index (RSI) remains in oversold territory, registering near 48 at press time—often a precursor to a reversal. Moreover, the RSI’s upward-trending channel suggests that momentum is strengthening, even as DOGE’s price continues to consolidate within a descending price channel.
A crucial test is underway as DOGE retests the top of its broken channel at approximately $0.255. If the leading memecoin successfully sustains above this level, it could set the stage for a rally toward the $0.27 resistance level. A decisive break above $0.27 may further propel DOGE toward $0.50 and potentially $1 before mid-year. However, failure to hold above this retest zone could see DOGE slipping back to support near $0.24, reaffirming the market’s inherent volatility.
On-Chain Activity Signals Stability
Despite price fluctuations, Dogecoin’s on-chain activity remains robust, signaling steady engagement. Daily active addresses continue to align with significant transaction volumes and whale transactions, reflecting persistent investor interest. In December, a surge in daily active addresses corresponded with increased transaction volumes, temporarily bolstering DOGE’s price.
Whale transactions exceeding $1 million have shown periodic spikes, coinciding with both price peaks and corrections. These fluctuations suggest that large holders play a pivotal role in determining DOGE’s short-term trajectory. As of press time, DOGE is priced at $0.252, with transaction volumes indicating sustained network activity despite prevailing market uncertainty.
The Road Ahead for DOGE
If the current level of on-chain activity remains stable or increases, it could serve as a catalyst for a bullish reversal, pushing DOGE towards higher resistance levels. Conversely, a drop in whale transactions and active addresses may reinforce bearish sentiment, highlighting the importance of strong network engagement for sustained price growth.
Also Read: Altcoin ETFs Near Approval: Litecoin, Dogecoin, Solana, and XRP Poised for SEC Green Light
Dogecoin’s next move will be pivotal. Traders and investors should closely monitor RSI movements, whale activity, and key resistance levels as DOGE navigates this critical juncture in its price trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
