The king of cryptocurrencies is once again above $37,500, and it could test $38,000 in the coming hours. The lack of a significant drop after the previous test has increased the risk appetite of altcoin investors. Investors who believe in the success of the upcoming test are already sending overbought signals in some altcoins like Mina Coin. So, what are the expectations for Dogecoin?
Dogecoin (DOGE) Analysis
Following the sell-offs on November 20, the cumulative reserves of DOGE miners had dropped to 4.17 billion. However, the reserves have been increasing in the last 3 days, reaching 4.57 billion today, returning to the levels at the beginning of November.
There is a 5% increase in reserves in the 7-day period and a 1.1% monthly reserve growth. Moreover, the erosion of reserves in the 90-day period has also decreased to 2.5%. Since the sell-offs by miners seem to have reversed for now, the price increase may continue.
The number of addresses holding DOGE for 1 day to 1 week has increased by 120%. There is also a 30% increase in the number of addresses holding DOGE for 6-12 months. These two data suggest that investors who aim for short-term profits in DOGE may have weakened. As expected, the meme coin king may start its stable rise.
DOGE Price Predictions
The on-chain data is positive, but what will be the price in dollars? DOGE is currently finding buyers at $0.077. This level was a region where profit-taking was intense in previous weeks. The long tail in the last 2 weeks confirms the increase in the number of holders for 1-7 days. If the price can close above $0.077, it can turn $0.08 into support again.
After that, breaking through the $0.084 and $0.087 regions is expected. The ongoing recovery after the rapid reversal of the recent rally suggests that a $0.1 movement may be imminent.
Of course, the strong stance of BTC is required for this. If the king of cryptocurrencies continues to close below $37,000, it will cause weakness in these altcoins as well. Investors are currently waiting for the breakthrough of $38,000 after the Binance consensus. With the realization of this expectation, we will see parabolic rallies in altcoins. Of course, it is impossible to predict the future, and assumptions are not news from the future.