Chart of the day: Dogecoin traders await 10% rally, with bullish signs on daily and weekly chart

Dogecoin Surges: Primed for Further Gains

In a remarkable surge, Dogecoin (DOGE) has rallied over 50% within three days, reaching its highest level in nearly three years. Technical analysis and market data suggest that this rally is poised to continue, potentially pushing DOGE towards its October 2021 peak.

Technical Indicators Point to Uptrend

Since October 3, DOGE has consistently formed higher highs and higher lows, indicating a positive momentum. The Moving Average Convergence/Divergence (MACD) indicator shows consecutive green histogram bars above the neutral line, confirming this momentum.

The Awesome Oscillator also supports the uptrend, indicating an upcoming impulse in DOGE's price.

Resistance Levels on the Horizon

DOGE has successfully surpassed the October 2021 peak of $0.340000 and resistance at the August 2021 high of $0.351700. The next key resistance lies at the June 2021 peak of $0.448340, approximately 9% above the current price. Should DOGE breach this level, it could aim for the May 2021 peak of $0.739950, 80% above the current price.

Derivatives Market Signals Bullishness

Open interest in Dogecoin futures has surged, reaching $2.86 billion on November 12, a three-year high. The high long/short ratio indicates that traders are bullish on DOGE's price growth, suggesting the rally could continue.

On-Chain Activity Indicates Whale Involvement

Large wallet investors, known as whales, have increased their Dogecoin transactions on November 6 and 10. This suggests either accumulation or transfers to exchange wallets. Historically, spikes in whale transactions have coincided with local price highs for DOGE.

Strategic Considerations

Dogecoin's price movement is likely influenced by factors such as Bitcoin's trend, the overall crypto market sentiment, and the performance of the meme coin sector. Investors should consider these factors when making decisions.

Note: This article is for educational purposes only and does not constitute investment advice.