Dogecoin (DOGE) Price Analysis: DOGE Set For Reversal as Adoption Grows

Dogecoin price sideways movement since last week has left traders conflicted about whether to focus on longs or shorts. A complex amalgamation of factors, including the US CPI report, on-chain data, and Bitcoin price volatility, has contributed to this conflict.

Dogecoin price has been trading sideways over the past week, leaving traders torn between focusing on longs or shorts. A combination of factors, including the upcoming US CPI report, on-chain data, and Bitcoin price volatility, is contributing to this indecision.

DOGE Price Shows Slight Recovery

Dogecoin price was trading at $0.1042 on Thursday, showing a 1.8% daily gain and a 4.2% weekly increase. Despite this recent short-term recovery, DOGE price is still down 14.2% over the past month, highlighting the ongoing challenges for bullish momentum.

An interesting observation from IntoTheBlock's addresses metric is the continuous increase in the total number of Dogecoin addresses with a balance. Over the last eight months, the ecosystem has seen a 20.1% growth in addresses, moving from 5.43 million to 6.56 million. This increase in addresses has occurred even as Dogecoin price declined since Q1, suggesting growing investor confidence. A larger user base could contribute to a future price rally.

According to Coinglass data, a 3.35% increase in open interest, bringing it to approximately $487K, suggests growing participation in the market, which could be accumulating bullish bets. A 60% surge in options volume also highlights the increasing derivative activity, which often precedes significant price movements.

At the same time, a 47% jump in options open interest points to growing expectations of volatility and shows the potential for large price swings. This will keep traders cautious in their approach to Dogecoin price and encourage them to consider other technical insights to avoid being caught on the wrong side of the trend.

DOGE Price Technical Outlook: Setting Up for a Reversal

The technical outlook for Dogecoin price will remain steadily bullish as long as support at $0.1 holds. Traders may consider placing bets on a larger price increase if DOGE manages to breach resistance at $0.11, which aligns with the falling wedge pattern's upper trend line.

The above is the detailed content of Dogecoin (DOGE) Price Analysis: DOGE Set For Reversal as Adoption Grows. For more information, please follow other related articles on the PHP Chinese website!