Dogecoin Price Jumps 14% After Elon Musk’s Comment, Nears $0.20

Dogecoin’s recent price surge has captured investor attention, with the meme coin rallying sharply over the past 24 hours. This increase followed a tweet from Elon Musk, often referred to as the “DOGEFather,” hinting at the cryptocurrency. 

DOGE’s price movement has brought it close to a six-month high, and market watchers are optimistic about its potential to breach this level soon.

Dogecoin Makes a Move

Dogecoin’s market sentiment currently reflects stability, as indicated by the MVRV Long/Short Difference metric. This indicator shows that long- and short-term holders are at similar levels in terms of profit or loss, suggesting that the asset is not overly biased towards either group. 

Typically, extreme values on this indicator would indicate significant profits for one group, such as long-term holders, while the other group lags. The balanced state seen now is a positive sign, as it reflects a stable environment where no single group holds a dominant advantage.

The macro momentum for Dogecoin appears strong, especially in terms of active addresses and investor profitability. Currently, 29% of all DOGE investors are in profit, an encouraging sign that could also introduce selling pressure.

Historically, as the share of profitable addresses surpasses 25%, some investors tend to sell, potentially influencing short-term volatility. If more holders make a profit, Dogecoin could face some temporary downward pressure.

DOGE Price Prediction: Six-Month High Next

With Dogecoin’s price up 14% in the past day owing to Elon Musk’s DOGE tweet, the meme coin is capitalizing on bullish momentum that could propel it toward $0.20. This target sits approximately 21% higher than DOGE’s current trading level, and reaching it would mark a significant achievement. 

Despite the positive factors, DOGE may encounter resistance at $0.17 before achieving its six-month high of $0.20. This resistance level could temporarily stall the rally if the asset struggles to break through, potentially delaying further upward movement and dampening near-term optimism.

If DOGE fails to breach the $0.17 resistance, a retracement to $0.14 may occur, which would challenge the bullish outlook. This drawdown would extend DOGE’s path to higher price levels, signaling a need for renewed momentum to restore the uptrend.

Source : BeInCrypto - Oct 29, 2024