Dogecoin Set Up For Further Gains? DOGE Investors Optimistic on $0.50 Price Target As Selling Pressure Drops

Dogecoin made a big comeback on November 20, reclaiming the $0.40 level after experiencing a 15% pullback from its three-year peak of $0.44, which reached November 12. The recent price action indicates a potential for further gains as selling pressure among long-term holders has greatly declined.

The Age Consumed metric for Dogecoin has dropped by an impressive 95% from last week’s peak, suggesting that fewer long-held tokens are being traded, which could clear the way for another upward movement.

The market dynamics surrounding Dogecoin have shifted positively. The Volume-Weighted Average Price (VWAP) is now positioned below the market price, signaling growing short-term demand.

As on-chain transaction flows indicate a decrease in selling pressure, DOGE appears ready for a potential rally toward the $0.50 price target.

Dogecoin Set Up For Further Gains After Selling Pressure: Is $0.50 Price Target Reachable?

This recent price movement has been fueled by a combination of factors, including market sentiment surrounding political developments and shifts in on-chain metrics that suggest a decrease in selling pressure among long-term holders.

The bullish momentum for Dogecoin can be traced back to the announcement of Elon Musk’s involvement in the proposed Department of Government Efficiency under former President Donald Trump.

The news generated substantial excitement among investors, propelling DOGE to its recent highs and contributing to a remarkable 185% increase over the past month.

However, as traders began to lock in profits following this surge, the price faced a correction, dipping to around $0.37 before rebounding.

One key indicator of market sentiment is the Age Consumed metric, which measures the activity of long-term holders by multiplying tokens traded by the number of days since they were last moved.

Following the recent price rally, this metric peaked at approximately 1 trillion DOGE as long-held coins flooded the market.

However, as of November 20, this figure has plummeted to just 49 billion DOGE—indicating a 95% reduction in selling pressure.

This sharp decline suggests that fewer dormant tokens are being traded, which could lead to rapid price increases if demand continues to rise.

The volume-weighted average price (VWAP) has also shifted favorably for DOGE, which is now positioned above the current market price.

This indicates that short-term demand is growing, with buyers willing to pay higher prices rather than waiting for market orders to fill at lower levels.

Such behavior reflects an accumulation phase in which investors are optimistic about future price movements.

From a technical analysis perspective, Dogecoin’s current price action shows promising bullish momentum.

The VWAP is approximately $0.395, indicating that most buyers bid higher prices to secure their positions.

The Donchian Channel indicator reveals that DOGE faces initial resistance at the $0.44 level—the peak reached last week—while support is established at around $0.29.

A breakout above the $0.44 resistance would signal a continuation of the upward trend and potentially target the psychological milestone of $0.50.

Analysts closely monitor these critical levels as they assess Dogecoin’s potential trajectory.

If DOGE can maintain its position above key support levels and break through resistance at $0.44, it could pave the way for further gains toward its all-time high of $0.73.

Conversely, if selling pressure returns and pushes prices below support levels near $0.29 or $0.20, it could trigger a bigger correction.

Additionally, external factors such as market sentiment towards cryptocurrencies and broader economic indicators will be crucial in shaping Dogecoin’s future price movements.

The Fear & Greed Index currently reflects a reading above 80, indicating extreme greed in the market. This sentiment could lead to volatility as traders react to potential profit-taking opportunities.

While Dogecoin’s recent performance indicates strong bullish potential driven by reduced selling pressure and positive market sentiment, investors should be vigilant about key resistance and support levels determining its near-term trajectory.

Best Wallet Token – Is this the Next Utility-Based Token Like Dogecoin?

As Dogecoin and other cryptocurrencies gain traction, Best Wallet Token ($BEST) is emerging as an exciting opportunity for investors looking to enhance their crypto management experience.

This wallet is designed to provide users with exclusive benefits within its ecosystem. Best Wallet Token offers features catering to casual and seasoned crypto enthusiasts.

Users can enjoy reduced transaction fees across the entire Best Wallet ecosystem by purchasing $BEST tokens directly within the Best Wallet app before November 25th.

This feature enhances cost efficiency and encourages users to engage more actively with their crypto assets without worrying about excessive fees eating into their profits.

In addition to cost savings, holding Best Wallet Tokens provides users with early access to trusted presales and new projects before they launch on the market.

This unique advantage allows investors to capitalize on emerging opportunities and potentially reap rewards before they become available to the general public.

Best Wallet Token holders will also benefit from higher staking rewards through the platform’s staking aggregator.

Users can earn annual percentage yields (APYs) by participating in staking activities, maximizing their investment potential while contributing to network security.

A key feature of Best Wallet Token is its governance rights, which empower token holders to vote on crucial decisions within the Best Wallet ecosystem.

While Dogecoin’s recent price movements indicate bullish potential as it approaches critical resistance levels, Best Wallet Token presents an intriguing opportunity for those looking to enhance their cryptocurrency management experience with added benefits and community engagement.

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The post Dogecoin Set Up For Further Gains? DOGE Investors Optimistic on $0.50 Price Target As Selling Pressure Drops appeared first on Cryptonews.