Dogecoin (DOGE) Price Breaks 4-Day Rut, Eyes 88% Rally to $0.24

Dogecoin's price broke out of a four-day rut, which saw the token drop to a daily low near $0.12 on June 25 before recovering.

Dogecoin price dropped to a daily low near $0.12 on June 25 before recovering. The DOGEUSD pair recovered after bulls aggressively defended the 20-day EMA (red wave) dynamic support level near $0.128.

DOGE price recently flipped the EMA trendline into support after its bull run in early July. Bears are now trying to keep the memecoin’s price below the 50-day EMA (purple) and 200-day EMA (green) resistance confluence.

Breaking above the confluence resistance would bring DOGE price close to the 100-day EMA (blue wave) resistance near $0.134. Flipping the immediate resistance might see the 1 DOGE to USD conversion rate reach $0.143 before correcting.

On the other hand, failure to keep the rally going could force the DOGE price to drop to the support levels near $0.12 and $0.114.

The relative strength index for DOGE remained neutral, with a score of 54.18 on the daily charts. Meanwhile, Dogecoin has lined up some interesting bullish cues in its favor.

Bullish Cues For Dogecoin

The Dogecoin supply distribution chart highlights that the wallets holding between 10,000,000 and 100,000,000 coins (represented by blue) show a steady increase, reflecting confidence among medium-sized holders.

Similarly, the largest holders, with over a billion coins (represented by red), have also been accumulating. Moreover, the medium and large holders’ accumulation suggests expectations of future price appreciation.

Despite fluctuations, the overall trend points to strategic buying, which often precedes upward price movements. The accumulation indicates that market participants are positioning themselves for potential gains.

Furthermore, a technical setup called the ‘falling wedge‘ also provides bullish cues for the Dogecoin token.

A falling wedge pattern features a pair of converging trend lines connecting lower highs and lower lows, forming a narrowing shape that slopes downward.

The pattern indicates that an asset’s price, while consolidating in a downtrend, is losing bearish momentum and preparing for a potential reversal to the upside. Typically, a breakout occurs upward, in line with the overall trend.

To estimate the price target, traders measure the widest part of the wedge at the beginning and project this distance upward from the breakout point. Moreover, a higher trading volume during the breakout confirms the reversal’s reliability, indicating stronger market conviction and a higher likelihood of success.

According to technical analysis rules, the DOGE to USD conversion rate might rally nearly 88% from its current level to reach the pattern’s projected target near $0.242.

Increasing Holder Also A Bullish Signal

Santiment recently shared data on the Total Amount of Holders for various altcoins, highlighting bullish indicators for Dogecoin (DOGE). The on-chain metric tracks the number of addresses holding a non-zero balance, signaling adoption and potential bullish trends.

Dogecoin ranks second with 6.69 million holders, just behind Litecoin’s 8.08 million. This surge in holders indicates growing interest and investment in DOGE, contributing to its bullish outlook.

The increase in the number of holders can result from new investors entering the market, previous holders returning, or existing users creating additional addresses for privacy. As such, the factors collectively suggest a positive sentiment and potential long-term price appreciation for Dogecoin.

The metric’s rise reflects net adoption, a bullish indicator for any cryptocurrency.