- Dogecoin began to climb higher after a retest of the $0.212 support level.
- The consolidation near the November lows, followed by a breakout, indicated a long-term uptrend was in play.
Dogecoin [DOGE] saw a breakout from a 2-month range formation earlier this month. This breakout took the memecoin’s price to $0.26, just below the $0.264 resistance. Since January, Dogecoin has been in a downtrend.
The bullish performance of Bitcoin [BTC] in the past six weeks has helped revitalize the leading memecoin, as well as the rest of the altcoin market.
BTC was still leading the market, and altseason was not here yet, but traders and investors can expect Dogecoin to rally further.
Dogecoin is ready to rally to $0.3 next
Source: DOGE/USDT on TradingView
The Bollinger Bands saw Dogecoin surge above the upper band on the 10th of May. It was forced to retrace from there.
The Fibonacci retracement levels marked for this move showed that the 50% retracement level was tested.
At press time, the price was moving higher once again. Its breakout beyond the range meant that the 1-day chart had a bullish market structure. The volume indicators noted that buying pressure was consistent.
The A/D indicator has slowly trended higher over the past two months. Buying volume has outweighed selling volume. The CMF was also above +0.05 to indicate positive capital flows to the Dogecoin market.
A move beyond the upper Bollinger Band could see a pullback, while the 20-day moving average was a dynamic support. The long-term Fib levels (yellow) showed that the $0.306 was the next target.
Source: Santiment
While the volume indicators showed strong buying pressure in recent weeks, the mean coin age metric showed network-wide distribution during the rally in May.
The falling MCA reflected increased token movement among DOGE holders, likely for selling.
The recent rally and retracement also saw a sharp uptick in daily active addresses on the 14th of May. The 90-day MVRV ratio showed that holders of the past three months were at a decent profit margin.
Hence, on-chain metrics showed that short-term holders taking profits could pose a threat to Dogecoin’s rally.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
