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Dogecoin has now reached a critical demand level after rising 4% from local lows, sparking serious speculation in the market. The meme coin has attracted the attention of analysts and traders, with mixed opinions about its next move. Some believe that Dogecoin is poised for a rally, while others point to the possibility of further declines in the future.
Key data from IntoTheBlock highlights the importance of short-term traders in increasing liquidity for meme coins like DOGE. This group of traders remains an important source of activity, often influencing rapid price fluctuations.
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Dogecoin is holding firmly above the critical level of $0.10, which is a key psychological support for the asset. If the price maintains the momentum, the next upside target will be around $0.11, which could spark more excitement and buying interest in the market.
As speculation continues, all eyes are on whether Dogecoin can maintain its recent strength or whether it will face another wave of selling pressure. The coming days determine the direction of the meme currency in the coming weeks.
Dogecoin price is driven by speculation
Dogecoin is facing intense speculation as investors and analysts express different views on the future price movement. After several weeks of ups and downs, the meme coin has experienced massive fluctuations, reflecting the erratic behavior of the overall market. The uncertainty surrounding Dogecoin has led to heated debates about whether it will rise or continue to fall.
Key data from IntoTheBlock It reveals the pivotal role of short-term traders in driving digital currencies, especially Dogecoin. These tokens thrive on hype and speculative trading activity, and DOGE leads the pack with the highest number of active short-term traders.
Over the past week, Dogecoin has seen nearly 113,000 short-term traders, confirming its dominant position in the meme space.
Interestingly, DEGEN, a much smaller token, has also attracted around 23,000 short-term traders – similar to the Shiba Inu, even though DEGEN’s market capitalization is only 10% of the size of the Shiba Inu. This highlights the speculative frenzy within the meme ecosystem, where less popular assets receive significant trading activity. In comparison, most mid-sized coins only show around 4,000 active traders in the short term, demonstrating Dogecoin’s continued strength.
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Despite the speculative nature of these assets, Dogecoin’s ability to attract the most active traders indicates resilience and points to the potential for future upsides, even amid broader market uncertainty.
DOGE holding above $0.10
Dogecoin (DOGE) is trading at $0.108, testing the 200 4-hour moving average (MA) as resistance. Bulls aiming to maintain momentum should reclaim this key indicator of a price increase. The 4-hour Exponential Moving Average (EMA) is also at $0.1088, just under 1% above the current price. This creates a crucial resistance area for DOGE.
A clear break above the 200 MA, 200 EMA and the $0.11 psychological mark is likely to trigger a rally, pushing the price higher as bullish momentum holds. However, failure to recover these indicators may lead to a more significant correction. In this case, DOGE may face a drop to $0.088, a key low demand level, indicating further decline in the coming days.
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As Dogecoin continues to test these levels, traders are keeping a close eye on a decisive move that could signal the next major trend, with the potential for upside or further downside contingent on whether the bulls can reclaim these moving averages and push beyond $0.11.
Featured image by Dall-E, chart from TradingView
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