Dogecoin (DOGE) Price Outlook for May 17

This particular price range, as prominent crypto analyst Ali Martinez notes, has historically been a tough ceiling for DOGE, repeatedly rejecting attempts at upward movement.

Dogecoin’s (CRYPTO: DOGE) price outlook for May 17 is drawing interest as the cryptocurrency today, May 16, challenges a critical resistance zone.

What Happened: According to crypto analyst Ali Martinez, the $0.25-$0.26 band has repeatedly rejected upward price movements.

Key Technical Resistance Zone: As seen on the chart shared by Martinez, this range has historically been a tough ceiling for DOGE, with several past failures to break through marked by black arrows.

If Dogecoin manages to break above and hold this range, it would represent a significant shift in market sentiment. Such a move could spark increased buying, setting the stage for a bullish run for DOGE leading into May 17.

Recently, DOGE was trading at $0.2268, with a large green candle showing strength and potential to reach the resistance area.

Chart: Benzinga Credit: X / TradingView

Surging On-Chain Activity: A Positive Sign for DOGE’s Short-Term Price?Martinez noted that there’s a surge in on-chain activity for Dogecoin, which may bode well for its price potential heading into May 17.

Daily active addresses are rising, indicating increasing user engagement. Transaction volume measured in USD has also seen an uptick, signaling more capital flowing within the Dogecoin ecosystem. Importantly, whale transaction counts for DOGE have climbed, indicating that large holders-often referred to as smart money-are becoming more active.

#Dogecoin $DOGE is seeing a rise in active addresses, transaction volume, and whale activity. All bullish signals that could support further upside!pic.twitter.com/pRHObYo60J

— Ali Martinez (@ali_crypto_notes) May 15, 2024

While spikes in on-chain metrics and whale activity can historically precede various types of significant DOGE price movements, the current uptrend in these figures could be viewed as a supportive factor for Dogecoin’s immediate price potential.

Technical Indicators Offer Clues for Dogecoin’s May 17 PathDaily technical indicators for Dogecoin also provide clues for its price outlook on May 17.

The RSI (Relative Strength Index) is currently at 61.98, below the overbought threshold of 70, suggesting there’s still room for further upward movement.

The MACD (Moving Average Convergence Divergence) indicator shows that the MACD line (blue) has crossed above the signal line (orange), with a growing histogram in the positive territory. This indicates bullish momentum.

Additionally, based on the recent local swing low around $0.14, key Fib extension levels provide a range of upside targets:

1.618 Fib at $0.141-already reclaimed, previously a resistance turned support

2.618 Fib at $0.115-firmly below current price, now a deeper support

3.618 Fib at $0.089-distant support in a bearish scenario

4.236 Fib at $0.073-marks the ultimate bearish floor if momentum collapses

See More: Top 5 Crypto Influencers To Follow In 2023: Benzinga's Picks