DOGE Price Analysis: Double Bottom Pattern Raises Hopes of Bullish Reversal As Dogecoin Large Transactions Spike

• Dogecoin is latching onto recent gains
• At the time of writing, DOGE was exchanging hands at $0.208
• The number of Dogecoin large transactions has increased by more than 70% over the last six months

The majority of crypto assets are recording slight losses in the last 24 hours. Dogecoin is latching onto recent gains in the last 24 hours as bulls show hesitancy in exiting its market scene. At the time of writing, DOGE was exchanging hands at $0.208, marginally up on the day. On-Chain metrics from IntotheBlock indicate that the number of Dogecoin large transactions has increased by more than 70% over the last six months. This uptick in the metric might suggest that high net worth investors are starting to take interest in DOGE at the current price levels. Binance recently resumed withdrawals for Dogecoin following an earlier interruption. Binance users had encountered a delay in Dogecoin withdrawals as 1,634 users received old transactions. The exchange claimed the disruption was caused by a technical glitch due to a wallet upgrade. In response to this, Binance has announced a planned upgrade, to a v1.14.5 version of the Dogecoin wallet.

Key Levels
Resistance levels: $0.3500, $0.3000, $0.0246
Support Levels: $0.1950, $0.1593, $0.1357

DOGE/USD Daily Chart: Ranging

DOGE/USD Daily Chart

Dogecoin is edging sideways around the $0.20 mark as clear directional impetus has softened after the DOGE/USD pair stretched to a near 4-month low of $0.17. The RSI is flattening in the negative territory, indicating a somewhat weak momentum in the price. On the upside, immediate resistance lies at $0.235 ahead of the MA 50 at $0.246. If the DOGE/USD pair successfully surpasses the MA 50, the next barrier could come at $0.259 coinciding with the MA 200.

More gains could take the bulls until the $0.30 barrier before challenging the $0.355 Oct. 28 high. A potential double bottom at Sep. 21 and Nov.28 lows of $0.19 raises hopes that a bullish trend reversal could be in progress. Alternatively, a drop lower again would endorse a short-term negative picture, allowing the DOGE price to flirt with the $0.19 and $0.18 support levels.

DOGE/USD 4-Hour Chart: Ranging

DOGE/USD 4-Hour Chart

Dogecoin drifted to lows near $0.1875 before recovering slightly. That said, only a break below $0.20 is needed to extend a price drop towards the $0.19 and $0.18 levels. If the latter fails to act as support, the next pivot point could occur near the $0.15 level. Traders, however, should be cautious as the 4-hour moving averages 50 and 200 located at $0.21 and $0.243 continue to cap upside movement.

In brief, DOGE is trying to set the stage for a bullish trend reversal through a double bottom pattern. Still, such an action may not be enough to produce an upward pattern in the broader picture unless the price rallies beyond its previous high of $0.355. An outlook upgrade, however, may be a tough task in the bigger picture, as the price should push harder to advance above the $0.46 level to achieve it.

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