May 29, 2023

Dogecoin (DOGE) price has finally taken a turn towards gains as the $0.06 support maintains its stance, but can a true reversal take place?

The global cryptocurrency market cap moved back above the $945 billion mark after a 3.34% increase over the last day. During this time, altcoins took the lead in terms of market gains. XRP and Dogecoin esepcially managed to carve out gains after long-drawn price downtrends. 

DOGE’s 4.5% gains on the daily chart weren’t massive compared to some of its altcoin peers, however, changes in certain long-term technicals and on-chain signals gave way to higher social anticipation among DOGE HODLers

DOGE Breaking long-term price barriers 

The DOGE price has made lower lows on the daily chart since Sept. 13. Prior to that, the meme token managed to make occasional gains owing to the larger market’s short-term bullishness or high social anticipation. 

In the early trading hours of Sept. 23, DOGE recorded its first higher low after a long downtrend, hinting at a reversal from the $0.057 support level. 

The Dogecoin price crashed by over 30% in the second half of August and saw an additional 12% decline between Sept. 3 and Sept. 20 after facing rejection at the $0.065 resistance.

DOGE/USDT Chart by TradingView

Over the last week, DOGE formed a double bottom and managed to make its way above the crucial $0.06 resistance.

Whales to the rescue

A look at DOGE HODLers highlighted that the number of addresses holding between 100 million and 1 billion DOGE increased by 5.13% over the past week.

Number of addresses holding 100M-1B DOGE | Source: IntoTheBlock

Additionally, amid improving technicals, around six new whales have joined the network, scooping up approximately 620 million DOGE over the same period.

DOGE balance by holdings | Source: IntoTheBlock

While DOGE whales seemed to come to the meme coin’s rescue there were still some supply barriers that DOGE would have to clear before a reversal can be called true. 

Despite mounting buying pressure, IntoTheBlock’s IOMAP highlighted that Dogecoin faces stiff resistance at $0.069 where over 86,000 addresses hold over 42 billion DOGE.

DOGE In/Out of the Money Source: IntoTheBlock

Additionally, on shorter-term charts (1 hour and 4 hour), DOGE’s RSI had started to present weakening buying pressure as the price plateaued around the $0.061 mark. 

In the coming days, a decisive daily close above the $0.069 level could trigger a breakout. However, if bears take control DOGE could revisit the $0.057 level. 


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