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- Dogecoin price shows bullish signs as it recently breached a month-old resistance barrier.<\/strong><\/li>\n
- Transaction data shows that a minor uptrend to $0.150 seems plausible.<\/strong><\/li>\n
- A four-hour candlestick close below $0.106 will create a lower low and invalidate the bullish thesis for DOGE.<\/strong><\/li>\n<\/ul>\n
Dogecoin price has shattered the downtrend in a recent run-up<\/a> and shows signs that more of these gains are around the corner. Although DOGE is facing temporary slowdowns, investors can expect bulls to make a strong comeback soon.<\/p>\n
Dogecoin price breaks out for more gains<\/strong><\/h2>\n
Dogecoin price formed a string of lower highs as it shed roughly 40% in the last 40 days. These swing points can be connected using trend lines; this downward-facing trend line has prevented DOGE from rising.\u00a0<\/p>\n
However, on March 18, DOGE saw a massive surge in buying pressure resulting in a breakout. Since then Dogecoin price has retraced but still maintains its bullishness. Therefore, investors can expect the meme coin to continue its uptrend.<\/p>\n
The dog-themed crypto will face the $0.140 hurdle first but clearing it will allow Dogecoin price to retest the $0.150 barrier. In total, this move would constitute a 27% ascent<\/a> from the current position – $0.120.<\/p>\n
![\"DOGE\/USDT](\"https:\/\/editorial.fxstreet.com\/miscelaneous\/DOGEPERP_2022-03-21_05-51-05-637834247386612185.png\")
<\/a><\/p>\nDOGE\/USDT 4-hour chart<\/small><\/p>\n
Supporting the bullish outlook<\/a> for Dogecoin price is IntoTheBlock\u2019s Global In\/Out of the Money (GIOM) model. This index shows that the next resistance cluster is relatively strong and extends from $0.126 to $0.155<\/a>.\u00a0<\/p>\n
Here, roughly 250,000 addresses that purchased roughly 25.15 billion DOGE tokens are \u201cOut of the Money.\u201c Therefore, a move into this cluster will likely result in selling pressure from these underwater investors.\u00a0<\/p>\n
Hence, market participants can expect DOGE to pierce this area and set a local top in the range mentioned above.<\/p>\n
<\/a><\/p>\n
DOGE GIOM<\/small><\/p>\n
While the bullish outlook makes sense from a transaction data standpoint, the whales do not seem to be interested in Dogecoin price. Large transactions worth $100,000 or more, which serve as a proxy to high networth investors\u2019 investment interest, have dropped from 1,800 to 688 in the past three months.<\/p>\n
This 30% reduction indicates that these buyers are not excited to purchase DOGE, suggesting that an uptrend might face problems due to a lack of momentum.<\/p>\n
![\"DOGE](\"https:\/\/editorial.fxstreet.com\/miscelaneous\/ITB_doge_number_of_large_transactions_2022-03-21T00_20_23.221Z-637834247977387310.png\")
<\/a><\/p>\nDOGE large transaction<\/small><\/p>\n
Regardless of the optimism around DOGE, a four-hour candlestick<\/a> close below $0.106 will create a lower low and invalidate the bullish thesis for Dogecoin price. In such a case, DOGE could crash 30% and revisit the $0.074 support level, allowing buyers to make another comeback.<\/p>\n
\n - Transaction data shows that a minor uptrend to $0.150 seems plausible.<\/strong><\/li>\n