11/5/2022 | FXSTREET
Dogecoin Price: Is shorting DOGE profitable while active addresses soar
Dogecoin price retraces after running into immense overhead pressure at $0.1600.
This intensifying overhead pressure might curtail DOGE’s anticipated move to $1.0000.
Positive pressure behind Dogecoin’s rally will likely sabotage calls for a retracement to $0.1000.
Dogecoin price is exchanging hands at $0.1312 after slowing down its uptrend marginally below $0.1600. The largest meme coin and now the eighth largest cryptocurrency boasts $17 billion in market capitalization after attracting $130 billion in trading volume over the last 24 hours.
DOGE’s fading momentum comes amid a crypto relief rally that saw Bitcoin price trade at $21,302 on Saturday. If Dogecoin does not clear resistance at $0.1600, investors can lock in profits as discussed by one of our analysts and focus on other trending assets like BTC, ETH and BNB.
What’s next for Dogecoin price?
It has yet to be determined if Dogecoin price has enough liquidity and momentum to break the stubborn resistance at $0.1600. This overhead pressure might drive DOGE to validate a potential double-bottom pattern. However, sellers will have to build an overwhelmingly bearish case for such a move.
For now, Dogecoin price trades at $0.1304 and can hold above higher support areas due to the support it is receiving from day traders. According to the On-Balance-Volume (OBV) indicator, more people are backing DOGE’s potentially bullish climb toward $1.000. Approximately $17.76 billion is being exchanged at the moment, with positive pressure accounting for most of the volume.
A buy signal from the Moving Average Convergence Divergence (MACD) adds optimism to the bullish outlook in Dogecoin price. Furthermore, the MACD’s uninterrupted northbound move above the mean line reveals that buyers have the upper hand for now.
A daily close above the critical hurdle at $0.1600 could quickly pave the way for DOGE to begin the subsequent phase of its journey to $1.0000. Dogecoin’s downside appears to be holding onto solid support between $1101 and $1141, as highlighted by IntoTheBlock in the IOMAP on-chain model. Approximately 9,500 addresses purchased 9.25 billion DOGE in that range.