Dogecoins 42% Rally Sparks Excitement, but DOGE Sell Signal Looms

Dogecoin Open Interest and Technical Indicators Paint a Bullish Picture

Open interest, or the total number of outstanding derivative contracts, further supports the bullish sentiment among Dogecoin holders. The open contracts have experienced a 66% increase, reaching $600 million, predominantly composed of long positions in the altcoin. This suggests a potential increase in price, as investors are betting on further growth.

DOGE Price Prediction

While the overall sentiment surrounding Dogecoin remains bullish, the price daily average address (DAA) divergence signals a sell signal. This metric compares fluctuations in the price of an asset with the volume of new addresses engaging with it, signaling potential disparities between price shifts and user adoption or network activity.

In the past, whenever this metric triggered a sell signal, Dogecoins price experienced a correction. Considering that this is the first sell signal of the year and a rather significant one, DOGE could face a substantial correction.

If the meme coin fails to convert the $0.182 resistance into support, it might fall below $0.164 and reach $0.151. This scenario could invalidate the bullish outlook, potentially resulting in a 26% decrease to $0.135.

However, if Dogecoin manages to overcome the sell signal and continues its upward trajectory, flipping the $0.182 resistance into support, it could chart a rise to $0.20, marking a two-year high. This achievement would further solidify the confidence of DOGE holders and attract more investors to the meme coin.