Dogecoin price showed a string selling pressure at the crucial Fibonacci Extension level, which could result in a bearish reversal.
Dogecoin On-chain Data Suggests Active HODLers
As per IntoTheBlock's Global In/Out of the Money (GIOM) metric, DOGEUSD bulls have a stronger position than bears. The bullish pressure might come from 335,940 addresses that have acquired approximately 18.08 billion DOGE tokens at an average cost of 0.0851 in the past.
Furthermore, 10.53% of DOGE holders are enduring unrealized losses (out of the money), whereas 86.29% are presently in a profitable position (in the money). Additionally, around 3.18% of participants are in the money or at the break-even point. As investors capitalize on the broader market rally, it is anticipated that the effective selling pressure on Dogecoin will remain lower, given that the majority of holders are in a profitable position.
Furthermore, Santiment data reveals that the number of active addresses increased substantially over the last thirty days. This surge signifies an increase in DOGE transactions, which implies a heightened level of crowd interaction. This trend may have a positive effect on the price of Dogecoin.
Crypto Bull Run Awaits The Bitcoin ETF Approval
However, the broader market context is bullish due to the hope of ETF approval, taking the BTC price over 40K.
The assumption that the SEC may approve one or more spot Bitcoin ETF registrations has led to the leading cryptocurrency's 59% spike since October 1. However, market observers eagerly await confirmation.
Buying and retaining cryptocurrencies can be complicated for non-technical investors. Wall Street giants have applied to the SEC for Bitcoin ETFs targeting U.S. investors. It appears that BlackRock and Bitwise amended their applications to meet regulatory questions from previous discussions.
Market expectations are 90% that U.S. regulators will approve a spot crypto ETF by January 10, 2024.
DOGEUSD Technical Analysis
In the daily Dogecoin price, ongoing buying pressure is visible as recent candles trade above the dynamic 20-day EMA level for a considerable time.
Moreover, the price reached the 1.618 Fibonacci Extension level from the 0.0561 low to the 0.0839 high, which is at the 0.1010 level. As the recent price showed a bearish rejection from the crucial resistance, we may expect a bearish correction, supported by a mean reversion with 20 EMA.
Based on the daily outlook of DOGEUSD, a bearish daily close below 0.0927 could lower the price towards the 0.0700 equilibrium point.
The alternative approach is to find a bullish rejection from the 0.0839 support with a daily close above the 20-day EMA, which could work as an immediate bullish signal.
