Dogecoin (DOGE) has seen an impressive uptrend over the past month, with its price rising from $0.108 to $0.209.
This surge allowed Dogecoin to reach its highest level in seven months. However, despite this bullish momentum, DOGE may struggle to surpass key resistance levels.
Dogecoin Investor Intentions Are Dark
Analysis of market sentiment through active address profitability reveals that approximately 40% of Dogecoin participants are currently in profit. Historically, when a substantial portion of network participants hold profitable positions, they are more likely to sell. This tendency to take profits can introduce downward pressure on The price of DOGEespecially since the percentage of profitable holders exceeds the 25% threshold, which is generally considered a bearish indicator.
The high level of profitable addresses calls for caution among investors looking for additional gains. If a significant number of holders choose to cash out, it could hinder Dogecoin’s upward trajectory, adding selling pressure that could prevent DOGE from reaching its next price milestone.
The macro dynamics of Dogecoinas reflected in the Relative Strength Index (ROI), indicates that the asset is hovering in the overbought zone above 70.0. Although this signals strong buying interest, prolonged stays in the overbought zone can sometimes lead to corrections. While there is currently no immediate threat of a reversal, Dogecoin’s RSI level suggests caution may be warranted.
In the past, Dogecoin has at times maintained overbought levels without facing immediate downturns. However, the possibility of a correction remains if buyer interest wanes or sellers begin to capitalize on recent gains.
DOGE Price Prediction: Fighting the Odds
The price of Dogecoin rose 8.5% in the last 24 hours, trading at $0.209. If DOGE manages to breach the critical resistance level of $0.220, it will reach a new seven-month high, further strengthening its strong position in the crypto market. A break beyond this level would signal renewed bullish strength.
However, given potential bearish signals from profit-taking and high RSI levels, Dogecoin may struggle to maintain its recent gains. Failing to break above $0.220 could result in DOGE losing the $0.200 support level, which could lead to a potential pullback to $0.176. This loss of support could shift market sentiment towards caution.
If Dogecoin manages To maintain its current bullish momentum, it could breach the resistance at $0.220, paving the way for an increase towards $0.300. This move would invalidate any bearish outlook, allowing for further gains as DOGE capitalizes on its current uptrend.
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