Dogecoin (DOGE) has thrilled its enthusiasts with a remarkable 42% rally over the past week.
Despite the looming sell signal, Dogecoin holders remain optimistic. The recent rally has recovered mid-March losses, bringing DOGE closer to the $0.20 mark.
Bullish indicators such as increased open interest and positive technical signals suggest further potential growth for Dogecoin.
Dogecoin (DOGE), the beloved meme coin, has left its enthusiasts elated over the past seven days as the altcoin completed an impressive 42% rally. Nevertheless, as the ascent continues, there is a prospect for adjustment. In 2024, the DOGE sell signal will reach its peak for the first time, prompting apprehension among investors.
Despite the looming sell signal, Dogecoin holders remain optimistic about the coin’s future prospects. The recent rally has recovered the losses witnessed by investors during mid-March, bringing DOGE closer to reaching the $0.20 mark. This achievement has instilled confidence among DOGE holders, who appear to be extremely bullish towards the coin.
Dogecoin Open Interest and Technical Indicators Paint a Bullish Picture
Open interest, or the total number of outstanding derivative contracts, further supports the bullish sentiment among Dogecoin holders. The open contracts have experienced a 66% increase, reaching $600 million, predominantly composed of long positions in the altcoin. This suggests a potential increase in price, as investors are betting on further growth.
Moreover, technical indicators are also painting a bullish picture for Dogecoin. The bullish neutral zone currently houses the Relative Strength Index (RSI), a gauge of the velocity and magnitude of price changes. Additionally, the Moving Average Convergence Divergence (MACD), a trend-following momentum indicator, has noted a bullish crossover. These indicators hint at the possibility of further growth in Dogecoin’s price.
DOGE Price Prediction
While the overall sentiment surrounding Dogecoin remains bullish, the price daily average address (DAA) divergence signals a sell signal. This metric compares fluctuations in the price of an asset with the volume of new addresses engaging with it, signaling potential disparities between price shifts and user adoption or network activity.
In the past, whenever this metric triggered a sell signal, Dogecoin’s price experienced a correction. Considering that this is the first sell signal of the year and a rather significant one, DOGE could face a substantial correction.
If the meme coin fails to convert the $0.182 resistance into support, it might fall below $0.164 and reach $0.151. This scenario could invalidate the bullish outlook, potentially resulting in a 26% decrease to $0.135.
However, if Dogecoin manages to overcome the sell signal and continues its upward trajectory, flipping the $0.182 resistance into support, it could chart a rise to $0.20, marking a two-year high. This achievement would further solidify the confidence of DOGE holders and attract more investors to the meme coin.