Dogecoin (DOGE) Signals Imminent Price Resurgence, Is It Time to Buy the Dip?

In a bearish move on March 10, Dogecoin dropped to $0.065, bringing it closer to the lows seen during the crypto meltdown in November 2022. On March 22, nevertheless, it had risen 17%, reaching $0.077. Participants in the Dogecoin network appear to be feeling less socially optimistic lately. Santiment, a blockchain analytics company, reports that Dogecoin mentions have significantly decreased over the past 30 days across popular crypto media channels. Social dominance measures the proportion of Dogecoin mentions in overall social media conversations involving a select group of more than 50 top-ranking crypto projects.

A drop in social dominance typically signifies that the majority of network users and holders are currently gloomy, which may encourage crypto investors to jump in and purchase the dip. The positive divergence between daily active addresses and recent price behavior is another important bullish indicator for DOGE.

A blockchain network typically suggests an impending rebound when it starts to gain popularity while the price of the underlying currency is declining. Due to the positive divergence, DOGE may experience further gains in the upcoming weeks.

The Exchange Market Depth data from IntoTheBlock indicates that DOGE may shortly surpass $0.10. Based on the most recent limit orders issued on exchanges, the Market Depth chart shows important buy barriers and sell zones.

As can be seen from the chart below, Dogecoin will probably encounter little resistance up until it reaches $0.088, where sellers want to unload 24 billion DOGE. If this resistance does not hold, DOGE may move toward $0.10, where 1.83 billion more DOGE have open sell orders.

The price of DOGE must decline below its present support area around the $0.070 region for the bears to seize the initiative. Around 7 billion DOGE have been ordered by consumers as of this time. Should this support fail to hold, DOGE might test $0.060 once more.