Although the Dogecoin market has entered a price stabilization phase, the history of fluctuations in this digital currency indicates the possibility of a new uptrend.
to the Report Crypto Briefing Dogecoin appears to be repeating the price movements it experienced earlier this year. The buying pressure is not high enough for Dogecoin to jump in price, however, the next move of this digital currency can be predicted with a few intra-chain indicators.
Dogecoin’s fate depends on two key criteria. The main Meem Quinn market has experienced a memorable year. The digital currency peaked at $ 0.74 in early May, during a period of market turmoil. Despite Dogecoin’s limited price fluctuations over the past few months, the digital currency has returned 4,500 percent since the beginning of the year.
The daily chart shows that Dogecoin will usually experience a long period of price stabilization before jumping and breaking the price trend. These periods are characterized by the formation of descending triangles that lead to exponential price movements.
Dogecoin, for example, continued this technical pattern for 26 days and experienced a 936% price increase in late January. Similar moves occurred in early April (April 1400) and after a two-month stabilization of prices.
The tenth market currency seems to be creating the same uptrend. While the $ 0.17 support prevents a sharp correction in the market, the Dogecoin price has formed a set of bearish ceilings since early May. Descending ceilings are conditions in which the price level of the new ceiling is lower than the previous ceiling.
Dogecoin could start moving towards a new price record by breaking the upper and oblique side of the downtrend triangle at $ 0.26.
Ascending signs to watch out for
Some of Dogecoin’s most important price moves have been boosted by the support of influential celebrities such as Elon Musk. This suggests that micro-investors should pay more attention to Dogecoin in order for prices to rise. However, some intra-chain indicators can identify changes in the buying pressure acceleration.
The large number of network transactions valued at more than $ 100,000 can indicate the influx of institutional investors or the activity of whales. A significant increase in the volume of large trades indicates that wealthy investors are preparing for a new uptrend.
Recently, 1,560 large transactions have been executed on the Dogecoin network. The number of large trades reached its highest level at 2,520 transactions on September 7 (September 17). A 38 percent increase in Dogecoin’s large trading volume could indicate the presence of whales trying to control price movements.
Buyers will have a better chance if this index registers a set of bullish ceilings. Ascending ceilings are conditions in which the price level of the new roof is higher than the previous ceiling.
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In order to detect the entry of small investors into the Dogecoin market, it is necessary to monitor the number of new addresses that are generated daily.
Network growth is usually considered as one of the most accurate price forecasting tools. In general, the constant increase in the number of new addresses created in a blockchain over time leads to an increase in price.
The daily joining of more than 22,000 new addresses to the Dogecoin network could mark the beginning of a new uptrend. In such a unique situation, traders must wait for the uptrend in this intra-chain index to form before entering a new trading position. In this way, they can be sure that the acceleration of buying pressure is increasing.
While the increase in the number of large transactions and the formation of new addresses in the network indicates an increase in price, the closing of the daily candle with a price of $ 0.17 and under the support of the descending triangle, can reverse the uptrend. Trading history shows that if this support level is broken, the price will face resistance in the range of $ 0.08.