Dogecoin stages a mini rally after the asset missed out on the FTX’s top 10 liquidation list. 
Dogecoin has been predicted to go as high as $0.08, however, it could face some resistance at $0.07. 

Dogecoin (DOGE) is currently trading at $0.062384 after surging by 3.8 percent in the last seven days. With a safety score of 79/100, Dogecoin currently has a market cap of $8,807,184,450 ($8.8 billion) and a 24-hour trading volume of $186,401,942. The mini-rally has been linked to the recent FTX court decision.

It was previously reported that FTX plans to liquidate $42 million worth of DOGE tokens to pay off creditors as part of the insolvency proceedings. This triggered a selling pressure in the market causing the asset to decline. However, investors are back to aggressively purchase the meme token following an unconfirmed report that the asset is missing from the FTX’s top 10 liquidation list. 

According to analysts, the past couple of months have seen Dogecoin strongly sustain its support level at the time the likes of Litecoin and the Sandbox fell to new cycle lows. Recently, on-chain data indicated the impact of Dogecoin long-term holders on the crypto ecosystem. Between August 14 and September 15, the long-term holders increased their holdings by 1.2 billion.

Within the same period, short-term investors increased their holdings by 1.56 billion coins. The Relative Strength Index (RSI) was also examined and observed that there is a positive upswing among investors.

A look at its chart indicates that the daily RSI was trending upwards and even reached the 40.45 mark on September 15th. In fact, the RSI has been in good shape since September 11. 

More on the Dogecoin Price Analysis

The price has been predicted to make a marginal surge upward. However, it could face resistance at the $0.07 price zone. A look at another metric called the Global In/Out of the Money Around Price (GIOM) shows that 35 billion Doge were purchased by 377,570 addresses at the price of $0.068. Based on the current price, those investors are at a loss, and any decision to liquidate their assets could cause a correction in the price.

With a current resistance level of $0.064641, the price could go as high as $0.08 if it could trade above this. When bears dominate the market, the price could go as low as $0.055. It is, however, expected that the over 466,770 addresses that purchased 6.45 billion DOGE at the maximum price of $0.060 could provide enough support. 

Recently, an analyst identified as Altcoin Sherpa predicted that Dogecoin could surge as high as 600 percent. However, this could take some time to happen. According to him, Shiba Inu and PEPE can also erode the benefits of Dogecoin. 

DOGE: A high probability/low IQ play is that you can just buy DOGE now and go into a coma and then wait for it to go to .30-.50 or even higher. It’s going to happen eventually. Downsides are opportunity cost, this could take a LONG time, and energy might go into SHIB or PEPE.

Crypto analyst Michaël van de Poppe has also predicted a rally for the meme coin. 

 

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Filed under: Bitcoin - @ September 19, 2023 6:56 am