During Wednesday’s U.S. trading session, the crypto market showcased a slight downtick following the Consumer Price Index (CPI) data. According to the latest figures, the U.S. CPI rose 3.0% year-over-year, slightly higher than the expected 2.9%. Thus, the Bitcoin price teased a breakdown below the $95,000 region, and the volatile memecoin like Dogecoin faces huge downside potential, but there’s a catch.
Key Highlights:
- Analyst Ali Martinez hints that on-chain metrics like daily active addresses, transaction volumes, and whale movements could project early signs of a Dogecoin recovery
- The inability to maintain downward momentum after Dogecoin dropped below $0.26 support signals a lack of strong selling pressure.
- The coin price currently wavering below the exponential moving average (20, 50, 100, and 200) indicates broader market sentiment is still bearish.
Dogecoin’s Low Volatility Phase: Key On-Chain Metrics to Watch
For over a week, the Dogecoin price showcased low volatility as it hovered above the $0.24 level. This consolidation with a neutral candle and price rejection on either side indicate no clear initiation from buyers or sellers.
Along with the steady Dogecoin price, the onchain data, such as daily active addresses, transaction volumes, and whale movements, hold key levels. According to crypto analyst Ali Martinez, a surge in these on-chain metrics could indicate the beginning of a new bullish leg for the popular meme coin.
The daily active addresses and transaction volume reflect user participation, serving as fundamental metrics to gauge the network’s health.
Meanwhile, whale activity is often associated with accumulation by large investors, which has historically coincided with market recoveries.
If these metrics surge, it would signal renewed interest among investors and bolster price rallies.
Bear Traps Sets Renewed Recovery in DOGE Buyers
The Dogecoin price analysis of the daily chart time frame chart shows the formation of a key reversal pattern called double. On February 5th, the coin price gave a bearish breakdown at the pattern’s neckline support of $0.26, paving the way for prolonged correction.
However, the dog-themed memecoin showed resilience above $0.24, shifting the price trajectory sideways. The lack of downside follow-up hints at weak conviction from sellers and a potential bear trap.
Thus, the Dogecoin price surge above $0.26 would confirm the fake breakdown and restore bullish momentum. The post-breakout rally could bolster buyers to reclaim higher.
Also Read: US State-Level Bitcoin Reserves to Inject $23B Into BTC: Report
