Title: “Dogecoin Eyes $0.2 Target as Profitable Addresses Hit 2-Year High – Analyzing DOGE’s Current Momentum”
In recent days, Dogecoin (DOGE) has seen a modest surge, aligning with Bitcoin’s movement toward the $43K milestone. The increased buying interest during the current dip hints at a potential breakout for the meme coin. This positive momentum is reinforced by several on-chain indicators, notably the substantial rise in profitable Dogecoin addresses, reaching their highest level in two years.
Boost in Long-Term Holder Confidence: Over the past month, Dogecoin has witnessed a noteworthy 22% increase in its value, instilling confidence among meme investors. As the Dogecoin price rose, so did the selling pressure from its holders.
According to the IntoTheBlock chart, there has been a significant shift in Dogecoin miners’ reserves. On November 24, these reserves stood at 4.67 billion Dogecoins. By December 15, the figure dropped to 4.39 billion Dogecoins.
This suggests that over three weeks, Dogecoin miners have reduced their reserves by approximately 280 million, equivalent to around $27 million. Miners appear to be capitalizing on the price surge to liquidate their holdings at peak values. A consistent trend of miners selling off can typically exert a negative influence on the price, especially near resistance levels.
What Lies Ahead for DOGE Price?: Dogecoin recently bounced back from a low of $0.91 as buyers displayed confidence near the dip. However, buyers are facing resistance in pushing the price beyond the $0.10 mark. Currently, Dogecoin is trading at $0.095, marking a 0.9% increase from yesterday’s rate.
Currently, sellers are aiming to push the price below the 20-day EMA. Success in this endeavor could heighten selling pressure, potentially causing the DOGE price to retreat towards the channel’s support line at $0.9. While this level might provide some support, a breach could lead to a further decline to $0.07.
The ongoing upward trend of both moving averages, along with the Relative Strength Index (RSI) favorably positioned, suggests that buyers have the upper hand. A breakout above the channel’s resistance could propel the price toward $0.11. Moreover, a surge above $0.12-$0.14 might lead to price consolidation in a bullish region at $0.2.