Evaluating DOGE’s next move after retesting Q3 support-turned-resistance.
- DOGE up 15% on the weekly charts, but hit former Q3 support at $0.12 Miners held steady with their tokens and could offer DOGE more room to rally.
Dogecoin [DOGE] seemed to be playing catch-up to an explosive rally fronted by Shiba Inu [SHIB] on Thursday. In fact, SHIB topped weekly charts with 36% gains, while DOGE’s gains stood at “just” 15% over the same period.
Now, DOGE could still see potential 33% gains and effectively catch up to SHIB. However, this roadblock must be cleared for the rally to extend.
Q3 support at $0.12
Source: DOGE/USDT, TradingView
On the daily charts, DOGE retested its Q2 support at $0.12, at the time of writing. It has stayed below this level since late July. Although the memecoin didn’t surge after reclaiming the support in mid-July, doing so could set it to target $0.16.
Such a move to $0.16 could trigger 33% potential gains for DOGE bulls. However, there seemed to be a key roadblock at the 200-day MA (Moving Average) at $0.13. A strong jump above the moving average could accelerate DOGE’s upswing to $0.16.
The rising trading volume (OBV) and RSI signaled strong buying pressure. This could boost DOGE’s attempt to reclaim its Q2 support.
However, a price rejection at $0.12 would invalidate the bullish outlook.
Short-sellers suffer $5 million loss
Source: Coinglass
That being said, DOGE’s Futures market also seemed strongly bullish, as denoted by a sharp rise in Open Interest (OI) alongside massive liquidations of short positions. About $5 million worth of short positions were liquidated in the last 24 hours alone.
However, the recent rally to $0.12 also tipped about 75% of DOGE holders’ into unrealized profit. This called for caution should the holders opt to take some profit at the resistance at $0.12. Such a move could derail the recovery.
Source: IntoTheBlock
On the contrary, Miners, one of DOGE’s key supply factors, have been holding steady with their mined tokens since August.
In fact, they increased their holding spree from July, as seen by the spike in Supply held by Miners (red). The reduced supply pressure from miners could offer DOGE more room for an extra rally.
Source: Santiment
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