Dogecoin Price Soars 5% Following Dogecoin Core Upgrade

Dogecoin price today rose even higher over the last 24 hours following Bitcoin’s upswing above the $60,000 psychological barrier. The markets are back to green, but the Bitcoin Fear and Greed Index shows that the majority of the market is still cautious. This may be because a majority of crypto assets, including DOGE, are forming what seems to be a rising wedge, which is a bearish reversal pattern. Nevertheless, DOGE prices are hopeful in the short term.

Dogecoin Price Tests Major Resistance

Dogecoin price is on a short-term upward trend within a larger downward trend. The price has been making higher lows, but it is still trading below both the 50-day ($0.1013) and 200 exponential moving average (EMA) ($0.1121), which suggests that the broader trend is still bearish.

The Dogecoin value is currently testing resistance around the $0.1100–$0.1120 range, which is near the 200 EMA. Above that, a stronger resistance level is around $0.1200, which coincides with the previous price action.

There is immediate support at $0.1, near the 50 EMA. A more significant support level is around 0.08, which aligns with a previous low.

The recent DOGE price action has formed a rising wedge pattern (marked as ABCD in the DOGE price chart), typically a bearish reversal pattern. This pattern suggests a potential breakdown below the wedge, which could lead to a downward move.

The 50 EMA is trending downward, and the price is struggling to break above the 200 EMA, reinforcing the bearish outlook. The Relative Strength Index (RSI) is at 65.31, which is nearing overbought territory. If the RSI starts to decline, it could indicate a potential reversal.

The Chaikin Money Flow (CMF) is neutral at 0.01, suggesting a balanced flow of money, but it doesn’t show strong buying pressure to support a sustained upward move.

Dogecoin price prediction shows the recent upward movement in price was accompanied by lower volume, which typically indicates weakening momentum. This divergence could suggest that the current upward move might not be sustainable.

Additionally, the recent Dogecoin Core upgrade to version 1.14.8, aimed at improving stability, efficiency, and security, may impact the price positively in the long run.

DOGE On-Chain Metrics Show Short-Term Upside

Data from Coinalyze, an on-chain analytics firm, shows DOGE open interest increased by 7.48% in the last 24 hours. Coupled with the increasing price, the DOGE price prediction suggests a potential continuation of the short-term upward trend.

Additionally, the number of large transactions involving Dogecoin increased over the last day, signaling that whales are accumulating DOGE, per IntoTheBlock data. Whales are significant players in any ecosystem, as they contribute greatly to price movements due to their substantial liquidity.

The recent Dogecoin price increase propelled 73% of holders into profit. This is a bullish indicator, as it communicates to outside investors that buying Dogecoin is profitable. More buyers push the price upward.

Additionally, Dogecoin’s profitability has led 67% of investors to become long-term holders. This bullish metric instills confidence in new investors, encouraging them to buy into DOGE and further driving the price upward.