Dogecoin Recovery in Sight: Key Indicators Signal Upward Momentu

4 days agoDogecoin Recovery in Sight: Key Indicators Signal Upward Momentum
The weighted sentiment curve entered the bullish territory indicating positive bias.
The bearish divergence in DOGE price DAA metrics has dropped signaling a potential recovery.

Dogecoin kicked off from the lows and has surpassed the 20 day Exponential moving average over the daily time frame indicating early signs of recovery. However, the bulls need to keep this pace until the price surpasses the 200 day EMA for a bullish reversal.

At the time of writing, the meme coin leader was exchanging hands close to $0.105 adding 3.1% to its market cap in the last 24 hours. It ranks 8th among all the cryptocurrencies with a live market capitalization of $15.44 Billion.

Amid the recovery in the price, the investors are keen to determine if DOGE is on the verge of a price rally. Let's analyze using on-chain metrics to clarify whether the upcoming days will be on the profit side or loss side for Dogecoin investors.
Investors Eye Dogecoin for Potential Gains
The price DAA (Daily Active Address) divergence indicator, which tracks the growing or diminishing influence of the bulls and bears, was currently headed from bearish territory to zero line. This is a strong sign of a recovery in the price and fading interest of the bears.

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However, despite the recent shift amid the increasing strength of the bulls, the price DAA curve was still in bearish territory indicating that the sellers are still in control of the trend which could limit the strength of momentum.

For the rally in Dogecoin to persist, the price DAA divergence indicator must surpass the zero line and claim its presence in the bullish territory.

The DAA stands for Daily active address which is a metric reflecting the total number of unique users participating in a particular transaction in the last 24 hours.

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Additionally, the weighted sentiment curve has shifted its territory from bearish ones to bullish indicating an improved sentiment. The weighted sentiment curve reflects the biases in the crypto whether it is bullish or bearish at the moment.
Dogecoin Price Prediction: What’s In September For investors?
Dogecoin price has been fluctuating in the range between $0.92 on the lower side and $0.115 on the higher side. A strong buying was experienced from the lower levels in the recent sessions and DOGE is edging towards the higher level.

Moreover, to maintain an upward momentum, Solana needs to break through this local supply zone. Given the strong technical indicators including the RSI and MACD, it's likely that DOGE crypto will flip the recent $0.115 barrier into a support and further proceed higher.

The RSI and SMA line highlights a bullish crossover which validates a bullish continuation at the moment. Additionally, the on-chain metrics are continuously improving in tandem with the bounce in the price.

Now, if dogecoin successfully flips the $0.115 level into support it may pave the way to a 25% gain on the higher side till the $0.14 level.

On the contrary, if the price fails to surpass the recent supply, it may invite more sellers to enter at a discounted price and the Dogecoin may crash towards new low. The short term traders and investors need to keep a closer look at the recent price action.