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  • Dogecoin price remains bullish as bulls eye $0.45.
  • Increased new users, increased transaction volume, RSI and MACD affirm DOGE’s bullish outlook.

DOGE has been one of the greatest crypto success stories so far for the year 2021. The meme coin that started out as a ‘simple joke’ has become a preferred cryptocurrency for some market players. Dogecoin price has gained momentum over the past few months with several fundamental and technical data points pointing to an increasingly bullish Dogecoin price prediction.

At the time of writing, DOGE is exchanging hands 113% higher than the July 20 low at around $0.158. This rally has seen Dogecoin flip the 200-, 50- and 100-day Simple Moving Averages (SMAs) from resistance to support respectively. The meme coin reached an intraday high of $0.353 on Monday August 16 with its 24-hour trading volume jumping by over 60% to $8.64 billion.

DOGE is currently exchanging hands in the green around $0.334 on most crypto trading platforms.

Increasing On-chain activity Affirms A Bullish Dogecoin Price

Realise that Increased on-chain activity indicates increased adoption of the Dogecoin platform as new token holders are attracted. This ensures long-term viability of the asset since new users help to increase the overall demand and velocity of the token.

As seen from the addresses statistics from IntoTheBlock, Dogecoin’s daily new addresses (DNA) have reached their highest in the past few months since the 2017 bull market. On May 7, Doge’s DNA reached the highest at 73,000 as compared to only 7,000 new addresses at the beginning of 2017. There were roughly 30,000 DNA on August 16.

DOGE New addresses

A tweet from Philip Gradwell, chief economist at Chainalysis accentuates this:

On-chain, Doge is being adopted by new investors at a level not seen since the late-2017 bull market, with new investors increasing their share of supply from 9% in July 2020 to 25% in August 2021.”

 DOGE Transaction Volumes Are Rising

A second reason for the bullish outlook for Dogecoin is the increasing transaction volumes as recorded on some of the biggest crypto exchanges.

According to data from Coinmarketcap, Dogecoin daily trading volume averaged $5.2 billion per day on all exchanges over the last 7 days.

This spike in on-chain activity could be an indication that retail investors are interested in DOGE accentuating its bullish bias.

Dogecoin Price Could Reach These Levels

A look at the daily chart shows that DOGE/USD is battling immediate resistance from the $0.344 resistance zone. Note that a daily candlestick closure above this level  will see the Dogecoin price breakout upwards as bulls eye $0.45, 35% above the current price.

DOGE/USD Daily Chart

Dogecoin price daily char

This bullish narrative is accentuated by the upward movement of the Moving Average Convergence Divergence (MACD) indicator above the zero line in the positive region. Moreover, the position of the Relative Strength Index (RSI) in the overbought region shows that buyers are in control of the meme cryptocurrency.

This bullish thesis could be invalidated if Dogecoin closes the day below the immediate support at $0.325. This could see DOGE fall to the 100 and 50 SMAs at $0.287 and $0.225 respectively. A further drop would take the asset to the 200-SMA at $0.213 or the July 20 low around $0.157.

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