An analyst on TradingView sees the Dogecoin and XRP pair showing signs of a bullish reversal, with support holding strong and volume increasing.
Dogecoin (DOGE) has experienced a volatile week, characterized by a short-term downward price trend but accompanied by emerging signs of bullish momentum, according to recent analysis. After starting the week around $0.22 on May 22, the cryptocurrency surged sharply to $0.25 the following day.
However, this was followed by a steady decline, with the current price at $0.2227, down 2.31% in the past 24 hours. Despite the overall dip, an analyst highlights potential technical indicators suggesting Dogecoin could be poised for a recovery and potentially outperform XRP. Notably, XRP is trading at $2.30
Key Support and Resistance Levels on DOGE/XRP
Analyst MergicNet on TradingView compared Dogecoin to XRP, pointing out that the DOGE/XRP trading pair shows potential signs of a bullish reversal. This outlook is based on the pair bouncing off a historic support zone between 0.075 and 0.085.
Notably, this support level has held since 2021, when the DOGE/XRP pair fell to 0.04 in April of that year. The support was tested again on July 14, 2023, with prices reaching 0.07 before rebounding to 0.36.
According to the analyst, the recent formation of a higher low indicates growing buying interest, and the price is attempting to break above the 0.10 resistance level.
In addition to support, resistance zones at 0.17 and 0.24 for DOGE/XRP remain significant, having acted as supply zones. The analyst notes that increasing trading volume at the bottom of the recent price range, combined with an improving price structure, indicates rising buying pressure.
Momentum indicators also support this view: the Relative Strength Index (RSI) is recovering from oversold territory, while the Moving Average Convergence Divergence (MACD) is forming a bullish crossover.
The analyst states that if the price breaks and holds above 0.12, it could reach 0.16 and then 0.21. However, failure to break resistance may lead to retesting lower support levels.
In dollar terms, a projected 0.21 DOGE/XRP would imply a Dogecoin price of approximately $0.4830, assuming it significantly outperforms XRP. Relative to Dogecoin’s current price, this would represent a 113% price increase.
Growing Network Engagement for Dogecoin
Further supporting the potential bullish momentum, recent on-chain data shows a notable increase in key Dogecoin network activity over the past week. The number of new addresses (NA) surged by 102.40%, reflecting a significant influx of new participants joining the network.
Meanwhile, active addresses (AA), which represent addresses involved in transactions, rose by 111.32%. This jump in transactional activity suggests higher engagement from existing holders, which often correlates with stronger market interest.
Additionally, zero balance addresses (ZBA) increased by 155.28%. While this metric does not directly imply transactional activity, it reflects changing wallet dynamics within the network. Taken together, these on-chain figures point to a more vibrant and liquid Dogecoin ecosystem.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
