Dogecoin (DOGE) Price: Is a Further Rally on the Horizon?
Dogecoin Price Momentum: Can the Bounce Continue?
Dogecoin (DOGE) is currently trading near $0.231, marking a 6% increase over the last 24 hours. While it's down approximately 1.4% month-on-month, DOGE boasts a 21.2% gain over the past three months. Several indicators suggest this recent bounce could extend further, potentially targeting $0.248 and beyond.
Key Indicators Suggesting Further DOGE Gains
Four key signs point toward continued upward momentum for Dogecoin:
1. Strengthening Dip Buying Trend
Analysis of HODL waves reveals a growing trend of dip buying. Over the past month:
- The 1–2 year holding cohort increased its share from 21.65% to 23.24%.
- The 1–3 month holder group rose from 5.43% to 6.58%.
This accumulation by both long-term and short-term holders indicates strong conviction in Dogecoin's potential.
2. Money Flow Index (MFI) Support
The Money Flow Index (MFI) on the 4-hour chart shows an upward trend since early September. This suggests that buying pressure is consistently absorbing dips, providing a solid foundation for further price increases.
3. Inverse Head-and-Shoulders Breakout
Dogecoin's 4-hour chart shows a breakout from an inverse head-and-shoulders pattern, which often signals the end of a bearish phase. The initial target for this pattern is around $0.248, representing a potential 7.4% increase from current levels.
4. Bullish Exponential Moving Average (EMA) Crossovers
The 20-period EMA has crossed above the 200-period EMA, forming a “golden crossover”—a bullish signal. Furthermore, the 50 EMA is approaching the 100 EMA, and the 100 EMA is nearing the 200 EMA. If these additional crossovers materialize, they could fuel further upward movement towards $0.248 and potentially higher.
Critical Levels to Watch
It's important to note that a drop below $0.210 would weaken the bullish pattern. A break below $0.204 would invalidate the bullish outlook entirely.
For now, the confluence of dip buying activity and bullish technical signals suggests that the path of least resistance for Dogecoin's price is upward.