Dogecoin's price is currently down, but on-chain metrics are showing strong investor interest.
Most holders are in profit, and long-term Dogecoiners dominate the market.
Dogecoin is forming a descending wedge pattern in the charts, which is very bullish in the long term.
If Dogecoin holds above $0.0947, we will likely see a retest of the 50-day SMA around $0.1155.
A breakout above $0.12369 could then trigger an 85% rally to $0.23.
The general crypto market is currently not in the most bullish of places, and Dogecoin is no exception.
According to data from CoinMarketCap, the cryptocurrency is at around $0.1, down 3.4% over the last week and 1.81% over the last 24 hours before writing.
Dogecoin’s price performance
However, what if Dogecoin is exactly where it needs to be for a massive rally to the upside?
Here’s what’s been up with the king of memecoins.
According to data from IntoTheBlock, despite the ongoing price sluggishness, Dogecoin holders are currently more profitable than they are out.
Dogecoin’s analytcis
As shown by the snapshot above, around 70% of Dogecoin holders are currently in the profit, compared to a relatively measly 27% running at losses.
Furthermore, the majority of these holders (around 67% ) have held their coins for more than a year.
This shows a deeper unwillingness to sell compared to the short-term holders.
In addition, these investors have made $826 million in transactions worth more than $100k over the last week.
Dogecoin’s on-chain signals
In general, IntoTheBlock analytics show that the outlook for Dogecoin is mostly bullish.
We have already established that Dogecoin is pretty healthy according to exchange metrics and on-chain indicators.
However, what about its price?
Dogecoin’s price action
According to the charts, Dogecoin currently trades in a descending wedge as shown, which might be bearish in the short term but is bullish in the longer term.
The Fibonacci retracement tool applied to the chart, shows that the cryptocurrency rebounded off the 78.6% level around $0.0947 on 6 August, and is now attempting to maintain its standing above $0.1 price.
At the time of writing, Dogecoin currently trades at around $0.1 on the dot.
Dogecoin’s price prediction
The chart narrative above shows that as long as the bulls hold the price of the cryptocurrency above $0.947, we are bound to see another higher high soon.
This means that Dogecoin will likely attempt to retest its 50-day SMA around $0.1155 between now and the coming week.
However, the main trigger for a breakout from the descending wedge would be a break above $0.12369, beyond which Dogecoin will be poised for an 85% rally to $0.23.
Beyond this point, the moon and beyond $1 is Dogecoin’s limit.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.