As the crypto market opened on Monday, a day before the US election, Dogecoin (DOGE) seemed to gain massively while other cryptocurrencies struggled. The Elon Musk-backed meme coin surged 6% last week while the market declined.
Major crypto exchanges reported that the digital asset has steadily climbed the charts from the $0.118 support level as it consistently sustained buying pressure. This is in stark contrast to the 0.34% and 2.22% surges experienced by Ethereum (ETH) and Bitcoin (BTC), respectively.
Dogecoin experienced the most spike in activity on Saturday, November 2, backed by Halloween parties, world record attempts etc community events. The festive cheer ushered in the growth in DOGE which was accompanied by the increase in the coin's trading volume.
The price chart comparison of Dogecoin reveals that the token is now into higher lows after breaking through a descending resistance line. This indicates that buyer confidence in the digital asset is gradually increasing. The meme coins have turned the $0.118 resistance level into a support zone, making way for upward movement.
As per volume analysis, there was concentrated buying activity for DOGE from October 30 to November 2, which subsequently led to a gradual tapering of trading intensity. This suggests that Dogecoin is in a healthy consolidation phase after a strong upward push instead of an exhaustive bullish trend.
The above 50 RSI and the bullish crossover in the positive territory shown by the MACD point towards the potential rally condition seen in the past. Earlier in 2023, the coin exhibited similar signals ahead of a 190% rally.
Based on the above observations, crypto analysts have forecasted two possible price scenarios for Dogecoin. One where it follows a structured waves pattern which would speed up gains. This prediction adheres to the ascending support trend line. The other scenario is a temporary pullback because of diagonal pattern formation. This would result in DOGE testing support levels before surging again. However, this forecast is less likely to come true as there are no bearish indicators.
As per social media metrics, there is a growing interest in the Elon Musk-backed meme coins as its mentions peaked by the end of October. This surge in interest came at the time of price appreciation even though it didn't result in any price movement. Dogecoin’s unique position in the meme coins market was further highlighted as it gained while others like Floki and Pepe declined by 8%, and SHIB went down 1.25%.
At present, the $0.175 level is most crucial for Dogecoin as crossing this will lead the token to the $0.335 mark. However, it might retest support at $0.118 if it can't cross the resistance level. Crypto traders have positioned themselves around these levels while waiting for the US election results.
As of November 5, DOGE is trading at $0.1752, up by nearly 12% in the last 24 hours while its market cap stands at $25.70 billion. The token’s trading volume increased by 56.16% over the last one day to reach $3.75 billion.