DOGE Price Analysis: Strong Buying Pushes Dogecoin to Record Highs, On-Chain Data Suggests This Recent Rally Has Legs

Highlights

• Dogecoin rallies to record highs of $0.633 amid strong buying interest
• DOGE was exchanging hands at $0.577, up by more than 39.50% in the last 24 hours and 105.96% weekly
• The meme coin has also grown in its on-chain volume against 2020 by 35.5x ($728,24 billion)

The cryptomarket witnessed a bout of profit-taking during early Tuesday trading. Dogecoin however rallied to record highs of $0.633. The price of Dogecoin has risen significantly since the week’s start after the eToro trading platform announced it will begin listing Dogecoin ahead of Elon Musk’s upcoming appearance on Saturday Night Live (SNL) slated for May 8. At the time of writing, DOGE was exchanging hands at $0.577, up by more than 39.50% in the last 24 hours and 105.96% weekly. Now ranking 4th largest and with a present market capitalization of $72.4 billion, DOGE is swiftly overtaking Twitter, U.S. car manufacturer Ford, and now, XRP. On-chain data from IntotheBlock indicates that on a year-to-date basis, DOGE has added 700,000 new holders (addresses with a balance) pushing this to a total of 3.7m. The meme coin has also grown in its on-chain volume against 2020 by 35.5x ($728,24 billion) and several “traders” (addresses <1m) by 286%.

Key Levels
Resistance levels: $0.7500 $0.7000, $0.6500
Support Levels: $0.4500, $0.4000, $0.3500

DOGE/USD Daily Chart: Bullish

DOGE/USD Daily Chart

DOGE is strongly positive as it reached all-time highs of $0.633 on May 4. DOGE has been in an upside move since Apr. 26 after rebounding off lows of $0.13. The move escalated when DOGE resolved a double bullish pennant on its daily chart. The short-term moving averages (MAs) are heading north, while the RSI is advancing in the bullish territory.

Surpassing the all-time high, DOGE prices could enter uncharted levels such as the nearby $0.65, the $0.80, and $1 barriers. Otherwise, a dive below the current level could meet the $0.44 immediate support and the $0.40 level ahead of the $0.34 support. Steeper decreases could send the market to a neutral tendency around $0.22 before the ascending trendline support at $0.13.

DOGE/USD 4-Hour Chart: Bullish

DOGE/USD 4-Hour Chart

Dogecoin attracted buying interest, surging to fresh highs. The price is climbing higher over consecutive 4-hour sessions while holding well above the MA 50. The RSI is approaching the overbought region, indicating a possible downside retracement. DOGE ran into resistance above $0.633, causing a slight retreat. In the event of a downside reversal, the $0.45 support may ease selling pressure.

Failure to bounce off the latter could bring the $0.40 and the $0.35 support which overlaps the MA 50. Even lower, the $0.30 support could shift the bias to neutral. Alternatively, if DOGE climbs up further off the recent level, it could flirt again with the record high, at $0.6334. A rise above this crucial line would take the market to uncharted levels such as $0.65 and $0.70.

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