Dogecoin [DOGE] rallied from the $0.07 lows last week to nearly succeed in pushing past the $0.10 psychological round number resistance. Despite a serious attempt, such a breakout did not materialize.
After reaching this exact level, Dogecoin bulls were forced to retreat. A Bitcoin [BTC] momentum stumble around the $82k supply zone has set DOGE back by 16.5% from the local high.
Despite the pullback, here’s why Dogecoin could be a buying opportunity.
Dogecoin has gone parabolic; now what?
On the 15th of August, crypto analyst Ali Martinez had warned that the leading memecoin was primed to go parabolic. The price action since then has vindicated the bullish stance.
The Tom DeMark Sequential indicator had flashed a buy signal on the monthly timeframe, a sign of a potential trend reversal.
Meanwhile, whales accumulated 430 million DOGE during the past week, according to Martinez.
The UTXO Realized Price Distribution (URPD) metric maps the acquisition cost basis of the circulating supply. A heavy cluster of UTXOs at $0.081 marked a key support zone.
Martinez argued that DOGE could target $0.177 while holding above this level. The UTXO Realized Price Distribution showed relatively little acquired supply between $0.081 and $0.177.
A return into this “air pocket” could allow DOGE to advance with limited on-chain resistance. However, losing $0.081 could expose holders within the broader support region to renewed pressure.
Where could DOGE buyers return?
The URPDs showed that $0.069-$0.081 was an onchain support area to watch out for. The price action highlights two levels within this zone worth watching.
The rally to $0.10 saw a daily session close above $0.092, the previous swing high from June (orange). The bulls achieved a market structure shift on exceedingly high trading volumes, which meant the rally was likely to be the real deal.
The Fibonacci retracement levels highlighted the $0.08-$0.074 area as the golden pocket to watch out for.
A brief price dip into this area could offer a buying opportunity targeting an impulse move higher toward $0.12, and even as high as the $0.155 yearly highs.
Final Summary
- Dogecoin has gone parabolic after whale accumulation and a monthly TD Sequential buy signal.
- The $0.07-$0.081 is a key onchain support, and the Fibonacci retracement levels inside the now-bullish swing structure agree.