- DOGE ETF inflows reached $177K on December 3, boosting interest.
- Network participation climbed to 71,589 active addresses, showing growth.
- Resistance forms at $0.20 due to high accumulation by holders.
Dogecoin continues to trade below a long-term descending trendline on the weekly chart. According to analyst Ali Martinez, a large volume of DOGE, approximately 11.72 billion tokens, remains concentrated between $0.2028 and $0.2044.
This accumulation zone now acts as a strong resistance, as many holders who bought in this range await a chance to exit at breakeven.
At press time, DOGE is trading at $0.1435, the price remains well below this key resistance area. Any upward movement could lose momentum once the price approaches the $0.20 level, due to expected selling pressure.
Technical Indicators Suggest Weak Momentum but Potential Recovery
Dogecoin fell 0.53% in the last session, with Bollinger Bands narrowing around the current range. The lower band is near $0.1410, which provides immediate support, while resistance stands at $0.1542.
The Relative Strength Index (RSI) is currently at 54.97, indicating neutral momentum. It had recently rebounded from oversold levels near 40.93, suggesting some buyers returned. Still, without a breakout above $0.1500, the price could remain in consolidation. Losing the $0.1410 level might invite more downside action.
The Mayer Multiple stands at 0.66005, far below the levels above 5 seen during past market tops. This suggests DOGE is trading below overheated levels seen in 2017 and 2021 peaks.
Network Activity and ETF Flows Show User Growth
Dogecoin network activity is rising, with 71,589 active addresses recorded the highest number since September, Martinez noted. This indicates increased user participation even though the price has yet to reflect a strong upward move.
Grayscale’s GDOG and Bitwise’s BWOW ETFs saw $177,250 in net inflows on December 3, according to SoSoValue. The total inflow since their launch now stands at $2.85 million. However, there were no new inflows recorded on December 4, showing cautious sentiment among institutional investors.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
