Dogecoin [DOGE] Is Preparing For a Potential Upswing, Here's When to Buy

Dogecoin [DOGE] was one of the few memecoins that refrained from joining the broader price increase in the last 24 hours

output: Memecoin Dogecoin (CRYPTO: DOGE) remained largely stagnant over the past 24 hours, while several other coins experienced price increases. However, certain indicators suggest that DOGE may soon join the rally.

Coins Holding Time soared by an impressive 387.03% over the past seven days, according to IntoTheBlock. This metric measures the number of days a coin has been held without any transaction.

When most coins aren't transacted, it usually indicates minimal selling pressure. However, an increase in transaction activity suggests that sell-offs might occur in between.

This aligns with the definition of HODLing in crypto - a situation where market participants decide not to sell their coins irrespective of price fluctuations.

maintained its position in the market. If this attitude continues, DOGE might experience some stability. And if buying pressure joins the scene, the price of Dogecoin could increase.

At press time, DOGE was trading at $0.12, which marked a 20.78% decrease over the past 30 days. In terms of trading volume, AMBCrypto discovered that it was down by 33% within the same period.

The decline in volume alongside the month-long decrease suggests that the downtrend was getting weak. Hence, it is possible to see DOGE price bounce from the lows.

Now, let's look at the price potential from a technical perspective. According to the DOGE/USD 4-hour chart, the Awesome Oscillator (AO) had risen to the positive region.

AO is a technical tool that measures momentum. Therefore, the positive reading of the AO suggested that Dogecoin's momentum was increasing.

Like the AO, the Relative Strength Index (RSI) reading also increased. However, the RSI had not yet risen above the 50.00 neutral zone. Hence, the price might hover around the $0.12 region for some time.

But a break above the point could send DOGE’s price higher. Furthermore, we identified potential price points using the Fibonacci Retracement indicator.

The Fibonacci indicator spots potential support and resistance levels. On the chart, we observed that 61.8% Fib level was at $0.13, indicating that DOGE could move toward the area.

In a highly bullish case, the price could rise to $0.15. Moreover, we examined the price DAA divergence.

DAA stands for Daily Active Addresses. It measures the number of active users on a blockchain. When put together with the price, the metric can tell you when to buy and when to sell a cryptocurrency.

Specifically, an entry signal appears when price grows more than the DAA. On the other signal, the metric indicates that it is time to exit if DAA grows more than price.

At press time, Dogecoin's price DAA divergence was -79.13%. This indicates that participation rate on the network is lower than price growth. Thus, it could be time to buy the coin before the potential upswing begins.