The Dogecoin (DOGE) community is buzzing with excitement as recent analysis indicates that the beloved meme-inspired cryptocurrency may be on the verge of breaking through the significant $0.1 price barrier. However, there’s one critical resistance level that stands in the way.
Dogecoin’s price movements have been closely examined using the “In/Out of the Money” (IOM) indicator, a tool developed by analytics firm IntoTheBlock. This indicator identifies the average purchase price of tokens for any address with a balance. If the current price exceeds this average cost, the address is considered “In the Money.” Conversely, if the current price is lower, the address is deemed “Out of the Money.”
Major Resistance Level to Watch
Currently, Dogecoin is trading at a price level backed by less than 10 billion DOGE in volume, which is not considered substantial in the volatile world of cryptocurrency trading. The next critical resistance level, fortified by a stronger volume of 12.8 billion Dogecoin, poses a significant challenge. Overcoming this resistance level could be a key milestone for the cryptocurrency.
Despite the challenges, several factors may bolster Dogecoin’s potential breakthrough. One such factor is the recent surge in volatility, particularly on networks like BASE. This heightened activity could provide the necessary momentum for DOGE to clear the upcoming resistance and set a course for the coveted $0.1 mark.
A Bullish Signal from the 200-day EMA
Another positive development for Dogecoin is its recent success in piercing through the 200-day Exponential Moving Average (EMA). This occurrence is often viewed as a bullish signal in the cryptocurrency market, potentially triggering a run toward the next price threshold.
At press time the price of Dogecoin (DOGE) was $0.0791 per DOGE.