- Dogecoin’s active addresses surged by 47% in a month, indicating growing network activity despite recent price declines.
- DOGE struggles below key MAs, needing to reclaim $0.184 (MA50) and $0.225 (MA200) for a bullish reversal.
- Stock RSI nears a bullish crossover, historically indicates strong rallies, with past surges of up to 444%.
Dogecoin has reversed its recent losses, rising by 2.33% in the past 24 hours to trade at $0.1694 at press time. The upswing raises hopes for a potential recovery above $0.20. However, the asset remains down by 19.78% over the last 7 days.
DOGE is additionally down by 36.50% in the past month. According to analyst Ali, Dogecoin’s network activity has increased, with active addresses jumping 47% in the last month from 110,000 to 163,000.
Exchange Flows Indicate Accumulation
Dogecoin’s recent movements align with exchange inflow and outflow trends. Green bars represent inflows, indicating selling pressure as more DOGE enters exchanges.
Red bars indicate outflows, suggesting accumulation as DOGE exits exchanges. From mid-November to early January, high inflows coincided with a price surge to $0.50. Between late January and March, continuous outflows suggested strong accumulation while DOGE declined below $0.30.
The price peaked at $0.5411 in late November, followed by steady declines, forming lower highs and lower lows. Recent outflows suggest accumulation, yet weak price action shows a cautious market.
DOGE holds support at $0.20, with $0.18-$0.17 as the next key level. Resistance is at $0.30, a barrier for bullish recovery, while stronger resistance is between $0.40 and $0.50. Continued outflows may stabilize DOGE, while increased inflows could lead to further selling pressure.
Moving Averages and Open Interest
Dogecoin’s price is in a downtrend, struggling below key moving averages. The 50-day moving average crossed below the 200-day moving average in early January, forming a bearish ‘death cross.’
The price is under both averages, confirming sustained weakness. For a bullish reversal, DOGE must reclaim the MA50 at $0.184 and the MA200 at $0.225. Open Interest trends further show the market sentiment.
In November, Open Interest peaked alongside DOGE’s price, indicating increased speculation. However, as prices declined, Open Interest also dropped substantially. Currently, Open Interest is at $1.04 billion, down from over $3.6 billion at the peak, indicating reduced trader participation.
Stock RSI Suggests a Potential Rally
Analyst Ali noted a historical trend related to Dogecoin’s stock RSI. When the stock RSI forms a bullish crossover on the weekly chart, DOGE has previously had substantial rebounds.
In October 2023, a crossover led to an 88% surge. February 2024 saw a 187% increase, while July 2024 recorded a 56% gain. In September 2024, DOGE surged by 444% following a similar pattern.
Currently, the stock RSI is nearing another bullish crossover, which could indicate a strong price movement. If past trends hold, Dogecoin may be up for another significant rally. Whether this setup will trigger another breakout, it remains to be seen.
