Dogecoin (DOGE) On-Chain Metrics Continue to Show Strength, Setting the Stage for a Mega Rally Ahead

Popular crypto analyst ‘Trader Tardigrade’ believes that the memecoin chart is similar to the 2014-2018 setup, which could trigger a parabolic rally to $180000000.

Dogecoin on-chain metrics continue to show strength, setting up the stage for a mega rally ahead. Although the DOGE price continues to flirt at $0.2250, market experts remain hopeful of its future movement.

Popular crypto analyst ‘Trader Tardigrade’ believes that the memecoin chart is similar to the 2014-2018 setup, which could trigger a parabolic rally to $18.

Dogecoin On-Chain Metrics And Whale Activity

Popular crypto analyst Ali Martínez reported how Dogecoin is witnessing a surge in key on-chain metrics, including DOGE active addresses, transaction volumes, and whale activity. Thus, the memecoin is gaining strong ground on multiple fronts at this stage, which could set the foundation for a DOGE rally ahead.

On the other hand, there’s heavy whale buying for the memecoin over the past month. In a notable trend, Dogecoin (DOGE) whales have amassed over 1 billion DOGE tokens in the past month, signaling heightened interest and activity among large investors.

Crypto analyst Ali Martinez shared the data, emphasizing the accumulation as a bullish indicator. Increased whale activity often correlates with market confidence and could indicate potential price movements ahead.

At press time, the DOGE price hovers around $0.2250, showing signs of a potential base formation at the $0.2188 support level. A breakout of the $0.27 resistance could pave the way for a rally towards the next key resistance at $0.35.

Moreover, the technical analysis in the Sunday morning session, reveals that the memecoin is currently forming a technical pattern known as a "triple bottom" at around $0.2188. This pattern is characterized by three lows at similar price levels, which could indicate a reversal of the downtrend and a potential upward movement for the cryptocurrency.

The cryptocurrency has been trading in a downtrend since August 1, when it reached a high of $0.34. Since then, the price has been steadily declining, reaching a low of $0.1409 on September 1. However, the triple bottom pattern suggests that the selling pressure may be easing, and the buyers are returning to push the price higher.

If the buyers manage to push the price above the $0.27 resistance, it could open the door for a move towards the $0.35 resistance level, which is the Fib 0.382, and set the stage for the next bull rally.

Finally, the relative strength index (RSI) on the 14-day chart is also showing signs of a recovery. The RSI is currently trading at around 40, which is in oversold territory. However, the RSI is showing signs of a rebound, which could indicate that the selling pressure is easing and the buyers are returning.

This recovery of the RSI could further support the price of Dogecoin in the short term.

DOGE Price Action Moving Ahead

The technical analysis in the Sunday morning session, reveals that the memecoin is currently forming a technical pattern known as a “triple bottom” at around $0.2188. This pattern is characterized by three lows at similar price levels, which could indicate a reversal of the downtrend and a potential upward movement for the cryptocurrency.

The cryptocurrency has been trading in a downtrend since August 1, when it reached a high of $0.34. Since then, the price has been steadily declining, reaching a low of $0.1409 on September 1. However, the triple bottom pattern suggests that the selling pressure may be easing, and the buyers are returning to push the price higher.

If the buyers manage to push the price above the $0.27 resistance, it could open the door for a move towards the $0.35 resistance level, which is the Fib 0.382, and set the stage for the next bull rally.

Finally, the relative strength index (RSI) on the 14-day chart is also showing signs of a recovery. The RSI is currently trading at around 40, which is in oversold territory. However, the RSI is showing signs of a rebound, which could indicate that the selling pressure is easing and the buyers are returning.

This recovery of the RSI could further support the price of Dogecoin in the short term.