- On Wednesday, Dogecoin’s price sits around $0.168, following a rebound from its 200-week EMA last week.
- Data indicates an increase in DOGE’s utility and whale wallet activity, suggesting a possible upcoming rally.
- A weekly close below $0.136 would negate the bullish outlook.
As of Wednesday, Dogecoin (DOGE) is trading approximately at $0.168 after bouncing back from its 200-week Exponential Moving Average (EMA) last week. The latest insights indicate an uptick in DOGE’s utility and the growth of whale wallets, signaling a potential rally for this dog-themed cryptocurrency.
On-chain metrics suggest a possible breakout
Like many meme cryptocurrencies, Dogecoin has endured a difficult two-month period of market correction. In spite of this downturn, data reveals that the number of wallets holding at least 1 million DOGE tokens has increased by 1.24% since early February. Additionally, the number of active addresses has reached a four-month high, surpassing 150,000. This growth in both wallet holders and utility points to a prospective breakout for the dog-themed crypto.
Dogecoin on-chain metric chart.
Technical analysis for Dogecoin: Bulls eyeing $0.22 if 200-week EMA support prevails
Last week, Dogecoin’s price successfully tested its 200-week EMA at $0.136 and found support there. As of today, DOGE remains above this EMA, fluctuating around $0.168.
If the 200-week EMA sustains its support and DOGE can close above the weekly resistance level of $0.181, it may extend its rally to test the next resistance at $0.220.
The Relative Strength Index (RSI) on the weekly chart is leveling out below the neutral mark of 50, signaling a decrease in bearish momentum, which may pave the way for a rebound.
DOGE/USDT weekly chart.
However, should DOGE fail to find support around the 200-week EMA and close below this level, it would invalidate the bullish outlook, potentially leading to a drop to re-evaluate the next weekly support level at $0.078.