$0.85 Is the Next Milestone for DOGE Bulls
In a possible attempt at breaking out, Dogecoin made some leaps and bounds in order to move past its current price level, as the meme token was trading at $0.70.
According to a Twitter user, if the leading meme token is able to success go through the supply wall at $0.75, then there could be a rise of 10% in the meme token.
This would result in DOGE reaching a price of $0.85.
The supply wall
The supply wall at $0.75 means that there are a number of DOGE holders who are looking forward to selling off their tokens at that price.
In the event that the price of the original meme token is able to go higher than $0.75, it would mean that the supply wall has broken.
Once the meme token is able to accomplish this, it is expected that DOGE would see its price record a 10% increase to reach $0.85.
The analyst said that a look at the historical pattern shows that people purchase the meme token at that particular price point.
The data shows that almost $12.34 billion worth of DOGE tokens had been purchased that that price level by almost 176,000 wallet addresses.
The pattern of accumulation of Dogecoin at the price of $0.85 shows that if the meme token is able to reach that level in the ongoing market cycle, then it would be able to get strong support that will drive it higher.
Current position
As far as the current position of the largest meme token in the market is concerned, its price movements that could be seen on the daily chart were analyzed.
The analysis shows that in recent weeks, DOGE accumulation has been on the rise and this is because a price rally is expected, once the token manages to break the supply wall.
At publishing time, the key momentum indicators were all above their neutral levels and the trend could be seen as bullish.
For instance, the Relative Strength Index (RSI) had climbed above the 50 mark and was at 59.80, while the money flow indicator (MFI) had touched 74.05.
More indicators
Likewise, the Chaikin Money Flow (CMF) was once more positive, as it was just above the central zero line at $0.10.
When the CMF value climbs above zero, it is considered a sign of market strength because it means that the liquidity required has entered the market.
Apart from that, the Awesome Oscillator indicator also confirmed the bullish trend for DOGE in the market.
Earlier this month, this particular indicator had actually turned red, which is considered a sign of bearish momentum because the small moving average (SMA) of the current period drops below the previous one.
But, thanks to accumulation in the previous week, the indicator had turned green, which shows a change in trend from bearish to bullish.
Similarly, since the funding rates were positive on various exchanges last week, many DOGE holders have placed their bets on a price rally in the future.
