Dogecoin (DOGE) has been moving slowly sideways for the past week, which has buyers unsure of whether to go long or short. This misunderstanding is caused by a variety of things, including new US Consumer Price Index (CPI) reports, changing Bitcoin prices, and new on-chain data.
On Thursday, the price of Dogecoin was $0.1042, which is a small 1.8% daily gain and 4.2% weekly gain. Despite these short-term gains, DOGE is down 14.2% over the last month. This shows that bullish buyers are still having a challenging time.
Dogecoin Market Interest
The number of Dogecoin addresses has grown by 20.1% over the last eight months, from 5.43 million to 6.56 million, according to IntoTheBlock’s address measure. This is positive news for DOGE. Even though the price has gone down since the start of the year, this rise in addresses shows that investors are becoming more confident.
The growing number of users could lead to a price increase in the future.According to Coinglass data, open interest has grown by 3.35 percent to around $487k, indicating that more people are entering the market and possibly accumulating bullish bets.
A 60% increase in option volume and a 47% increase in option open interest also show that the market is becoming more volatile and that prices could change a lot. Traders should be cautiously positive about Dogecoin’s technical future as long as the price stays supported at $0.1.
A possible break above the support level at $0.11 could mean that the trend is going up, and the price could go as high as $0.2. A falling wedge pattern reinforces this positive scenario. In the past, this pattern has caused significant price changes following a breakout.
However, breaking the support level at $0.1 could quickly shift the mood from positive to bearish. This could lead to more selling pressure and a drop to around $0.08 or even $0.056.
