Dogecoin sprints towards $0.10 in short term: On-chain data supports bullish outlook

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This news was published on November 9, 2023, Taiwan time
The headline is Dogecoin Sprints Short-term Sprint to $0.10: On-Chain Data Supports Bullish Outlook

Dogecoin’s latest price performance shows a bullish trend, especially after reaching $0.077 for the first time in the last three months. The rally is supported by multiple key on-chain indicators, suggesting that Dogecoin may be headed for further gains. First, according to data from IntoTheBlock, 50.29% of Dogecoin holders are currently profitable, as their average acquisition cost is lower than the current market price of $0.0759. Furthermore, daily active addresses and new addresses increased by 22.36% and 55.00% respectively from November 1st to 8th, indicating that the demand for Dogecoin is increasing. Another indicator that supports the bullish thesis is the number of open contracts in the Dogecoin futures market, which has risen back to August 2023 levels, indicating more capital inflows into the asset. Putting this data together, the outlook for Dogecoin is bullish, with a new price target now set at $0.1000, which is not only above its recently broken $0.0770 level, but also the next key resistance point in its upward price trend.

This news can analyze the price trend of Dogecoin from the following perspectives:

1. On-chain indicators show increased market participation and profitability: The article points out that 50.29% of DOGE holders are currently profitable, which reflects the confidence of market participants. Historically, when a majority of holders are in the black, this usually results in more buying action as the market becomes optimistic about further gains.

2. Growth in active and new addresses: This metric shows that interest in DOGE is increasing. Historically, increases in active addresses tend to correlate with price increases, as more transactions and usage indicate higher demand. For example, in May 2021, during Dogecoin’s price increase, we witnessed a similar increase in active addresses.

3. Open interest in the futures market picks up: This shows that investors are optimistic about future price increases. In the past, we have also observed an increase in open interest during Dogecoin’s dramatic rise like in early 2021, which suggested that market participants were positive about the price action.

Overall, Dogecoin is showing strong bullish signals based on the latest on-chain indicators and market dynamics. More than half of the currency holders are in profit, the significant growth of active addresses and new addresses, and the recovery of open interest in the futures market are clear signs that the market has strong expectations for future price increases of DOGE. Based on the above factors, this channel believes that this is the golden moment for long-term investors to accumulate chips and plan for the future. However, it must be emphasized that these views we share are not professional investment advice. They are only based on our observations and analysis. If you have any questions about our interpretation, we recommend that you refer to the source news link attached in the information column. For further verification, it is crucial for investors to do their own homework. Please remember to never invest in something you do not understand, never invest in a position that you cannot afford to lose, and make investment decisions carefully. . Of course, we will continue to pay close attention to the latest developments in Dogecoin.