Will DOGE’s Latest 2% Spike Push Dogecoin to $1?

Highlights:

• The price of Dogecoin has soared 2% to $0.41, as the crypto market as a whole has risen 2% in the past 24 hours. 
• Coinglass data indicates a growing interest from traders and could be a precursor to Dogecoin price volatility.
• Dogecoin price pushes into consolidation, which may act as an accumulation period for a breakout to $1. 

Dogecoin’s price has increased by 2%, trading at $0.41, as the crypto market as a whole has risen by 2% in the past 24 hours. Despite the rise, its daily trading volume has plunged 36% to $6.16 billion, signaling a slight fall in market activity. Meanwhile, DOGE is down 7% in a week but remains up 4% in a month and 328% in a year. 

Examining the Open Interest based on the on-chain metrics data, Coinglass, we see that a significant consolidation phase coincides with DOGE’s recent price movements. The total number of outstanding derivative contracts that have not been settled saw a marked increase.

This typically indicates a growing interest from traders and could be a precursor to price volatility as positions are more extensive and more traders are involved in betting on future price movements of DOGE. 

Dogecoin Statistical Data

Based on CoinmarketCap data:

• DOGE price now – $0.4102
• Trading volume (24h) – $6.16 billion
• Market cap – $60.38 billion
• Total supply – 1147.16 billion
• Circulating supply – 147.16 billion
• DOGE ranking – #7

Dogecoin Bulls Aim for a Breakout Above the Consolidation Channel

The Dogecoin price could be in for another rally, as it has pushed into a consolidation phase. The DOGE price oscillates between $0.35 and $0.46, which might act as an accumulation period before a massive breakout, potentially to $1. 

Currently, the meme coin trades above all the moving averages, tilting the odds towards the upside. Meanwhile, the bulls have established strong support at $0.32, coinciding with the 50-day SMA, while the 200-day SMA is at $0.0253, forming strong dynamic support. These levels are important in reinforcing the impending breakout which could cause a rally.

The Relative Strength Index (RSI) is above the 50-mean level, adding to the highly anticipated breakout. Increased buying momentum at this level will see the RSI surge towards the overbought region, as there is still more room for the upside. 

On the other side of the fence, the Moving Average Convergence Divergence (MACD) introduces a new bearish outlook on the daily chart timeframe. A sell signal manifested when the blue MACD line flipped below the orange signal line, revealing that declines should be expected before the Dogecoin price rallies to $1. This impending correction could gain momentum if the MACD continues to drop toward the neutral zone (0.00) and later into the negative region.

What Next for the Dogecoin Price?

The Dogecoin market could be building for a breakout which could see the meme coin price reach $1. Moreover, as the meme coin has pushed into a consolidation phase, this might act as an accumulation period, causing a massive breakout. 

If the support levels stay intact and the bulls capitalize on the rising RSI, the Dogecoin price could hit the $1 milestone. In a highly bullish case, it could rally to $3. On the downside, if the bears capitalize on the sell signal manifested by the MACD indicator, DOGE could plunge, chasing the $0.36 mark.