- Dogecoin price analysis shows DOGE has formed a falling wedge chart pattern.
- A correction from the highs of $0.09297 to $0.08401 has been seen, as Dogecoin attempts to find support.
- The dogecoin community is showing strong bullish sentiment with a potential for further upside in the near future.
As of April 20, 2023, Dogecoin was trading at $0.0942 during the opening of today’s trading session, up almost 94% from its low of $0.0491 in June 2022, but still 88% below its all-time high of $0.76 set in May 2021.
The price rebound in October 2022 coincided with Elon Musk’s shaky takeover of Twitter amid hopes that Dogecoin would become the social media platform’s official payment token.
However, Musk has not added a DOGE payment option on Twitter. Still, he briefly replaced the platform’s iconic bluebird logo with the Dogecoin official mascot from the Shiba Inu meme earlier in the month, and DOGE rallied by up to 40% on the news.
The subsequent uptick in Dogecoin price was pumped by the Starship launch on April 20, when SpaceX CEO Elon Musk revealed that the Starship launch was successfully completed. However, after gaining 10%, Dogecoin corrected at $0.08401, a pullback from $0.09297 as profit-taking began to creep in.
Analysts suggest that Dogecoin is beginning to form a falling wedge chart pattern, which is often seen as a sign of bullish sentiment. This indicates that the pullback could be only temporary, and there’s potential for further upside shortly.
On-Chain Metrics Point to a Bullish Thesis for Dogecoin Price
Dogecoin has been a topic of interest in the cryptocurrency market for a while now. One of the on-chain metrics, the Global In/Out of the Money (GIOM) index from IntoTheBlock, supports the bullish thesis for the Dogecoin price.
To identify the investors’ average purchase price, the GIOM index analyzes crypto addresses that bought a cryptocurrency at an average price above or below the current market price. The GIOM index indicates robust support between the $0.05 and $0.07 range, where around 519,530 addresses bought 44.73 billion DOGE at an average price of $0.06.
The Santiment data has also shown a significant increase in interest in Dogecoin over the last three months, indicating a sizable growth in the network. The network growth reflects the number of new users joining the cryptocurrency ecosystem. It is generally observed that rising network growth leads to a rising price of a project over time.
However, the bullish thesis for the DOGE price could face selling pressure. A $0.08 support level loss could cause the meme coin to revisit the March lows around $0.07. It is essential to monitor the support and resistance levels closely to determine the momentum of the price movement.
In conclusion, the GIOM index and the increased network growth support the bullish narrative for Dogecoin. As per CoinMarketCap, Dogecoin is trading at $0.08402, down by 5.26% in the last 24 hours. Dogecoin has sharply from a high of $0.09297 as profit-taking crept in. The technical indicators have turned bearish, but analysts believe that the Dogecoin price could still be set for a rally as bullish sentiment is still present. It will be interesting to watch how Dogecoin performs in the near future following the Starship launch.
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