(John Isige – FXStreet)
– Dogecoin and other meme coins like Shiba Inu rally as drums beat for the upcoming Ethereum merge.
– DOGE sits on robust support highlighted by the IOMAP cohorts at $0.0681.
– Dogecoin whales ease off their selling spree as retail investors return to reinforce the uptrend.
Dogecoin price and other dog-themed cryptocurrencies made significant moves over the weekend amid speculation and excitement for the upcoming Ethereum software upgrade. DOGE pushed its weekly gains to 11.4% after an intraday move to $0.0847.
Dogecoin price jumps as optimism on the Ethereum merge grows
Investors appear to be positioning themselves ahead of the much-awaited Ethereum merge – a software upgrade scheduled for September 2022. As covered before, Ethereum will transition to a proof-of-stake (PoS) from a proof-of-work (PoW) consensus.
Hayden Hughes, the CEO of Alpha Impact, a trading platform, believes that retail investors have returned ahead of a rally that will mainly impact Ethereum and meme tokens like Shiba Inu and Dogecoin.
“Dogecoin and Shiba Inu have broken out over the weekend, clear evidence that the retail investor is back.”
On the other hand, the CEO at Venn Link Partners consulting company, Cici Lu, reckoned that traders should tread cautiously because meme coins lack the market depth enjoyed by Bitcoin and Ethereum.
Based on the Dogecoin price technical outlook, the ongoing pullback from $0.0847 is unlikely to extend further. Moreover, the 100-day Simple Moving Average (SMA) is in place to prevent DOGE from bleeding below its primary support at $0.0700.
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If the Moving Average Convergence Divergence (MACD) keeps its divergence with the price bullish, Dogecoin price will renew the uptrend eyeing $0.0900 and $0.1000, respectively. It is worth mentioning that an ascending triangle formed on the daily chart will continue to influence Dogecoin’s price positively.
Affirming Dogecoin’s price uptrend is supported by IntoTheBlock’s IOMAP between $0.0665 and $0.0692, where roughly 124,000 addresses bought 44.95 billion DOGE tokens. It will be challenging for bears to disperse all these buyers, which leaves Dogecoin price on a clear path north.
On the upside, weak and scattered resistance areas currently adorn the path to $0.1000. With a small push, the Dogecoin price could take off to levels higher than $0.1000.
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