Will Dogecoin (DOGE) reach $0.22? Insights from market sentiment

Dogecoin (DOGE), the world's largest meme coin, experienced a significant price increase of over 70% in October 2024 and has now reached a critical resistance level. This raises the risk of a significant price correction or consolidation in the short term, which could temporarily halt DOGE's upside rally in the coming days.

Dogecoin (DOGE) technical analysis and upcoming level

According to expert technical analysis, DOGE looks bearish but is currently at a strong resistance level at the $0.18 level. Since March 2024, MemCoin has reached this resistance level several times but has experienced selling pressure and price reversals.

At this point, the sentiment has changed and there may be a further upside down rally. However, this is only possible if DOGE breaks this resistance level and closes a daily candle above the $0.18 level.

Based on price action, if this happens, there is a chance that MemCoin could rise by 25% to reach $0.22 in the coming days. On the other hand, there is also the possibility of some price correction as the DOGE has experienced a relentlessly impressive inverted rally in the coming days.

DOGE's Bullish On-Chain Metrics

DOGE's bullish attitude is further supported by chain metrics. According to on-chain analytics firm Coinglass, DOGE's long/short ratio currently stands at 1.09, indicating strong sentiment in the market.

Additionally, open interest rose by 14.1 percent, reflecting strong participation from traders and investors.

The combination of bullish chain metrics with technical analysis suggests that bulls are currently dominating the asset and DOGE may support it in an inverted rally.

As of now, DOGE is trading around $0.174 and has experienced a price increase of over 10% in the last 24 hours. During the same period, the transaction volume increased by 29 percent, which has increased the attention of investors and traders.