- DOGS reaches key Fibonacci levels with room to grow, supported by technical indicators.
- Bullish on-chain metrics and the dominance of long liquidations highlight the strong support for further gains.
Dogs [DOGS] has seen an explosive 40% increase in the past week, driven by a strong wave of buying interest and bullish momentum.
The token is currently trading at $0.0007026 and was down slightly by 1.54% at the time of writing, but has still managed to maintain impressive growth amid the volatile market. As DOGS continues to turn heads, the big question remains: can it sustain this rally?
DOGS Technical Analysis: What are the Key Levels to Watch?
DOGS has shown promising moves, breaking out of previous lows and pushing to higher levels. The Fibonacci retracement chart indicates the key levels that can determine the future direction of the token.
DOGS was hovering around the Fibonacci level of 0.618, a potential support area that could stabilize the price in case of a pullback.
Moreover, the next resistance is around the 1.618 Fibonacci extension at $0.0011343. This level is critical as crossing it could fuel a further rally, potentially taking DOGS to the 2.618 extension level at $0.0015458.
However, failure to break these resistance levels could lead to consolidation, with support around $0.0006565.
The Relative Strength Index (RSI) currently stands at 54.76, indicating that the token is not yet in overbought territory. This level suggests that DOGS still has room for growth before potential selling pressure arises.
Therefore, this moderately bullish RSI reading corresponds to a potential continuation of the uptrend, provided the overall market remains supportive.
Source: TradingView
On-chain DOGS signals remain bullish
The on-chain data reveals multiple bullish signals. Despite a slight decline in net network growth, three key figures show a positive outlook. The ‘In the Money’ metric, which is up 9.79%, indicates that more DOGS holders are benefiting, which often boosts investor confidence.
Similarly, the ‘Concentration’ metric is up 0.03%, indicating that larger holders or ‘whales’ are maintaining their positions, indicating confidence in the token’s potential.
Furthermore, ‘Large Transactions’, up 0.25%, means high-quality transactions are taking place, indicating institutional interest or large-scale investments.
These bullish on-chain metrics underscore growing support within the DOGS ecosystem, reinforcing its fundamental strength amid price swings.
Source: IntoTheBlock
Liquidation data shows a bias towards long positions
The liquidation chart shows a recent increase in long liquidations, totaling $743.41K, compared to $111.39K in shorts. This ratio suggests that a majority of traders remain optimistic and expect the price to continue rising.
Binance leads in long liquidations, with $509.38K, followed by significant long liquidations on Bybit and OKX, with a total of over $100K each.
Therefore, even though there is optimism, traders should proceed cautiously as high liquidation levels can cause rapid price shifts.
Source: Coinglass
Read Dogs’ [DOGS] Price forecast 2024–2025
Can DOGS continue its upward trajectory?
DOGS has shown remarkable strength with a 40% gain in the past week, and technical and on-chain indicators point to further room for growth.
However, key resistance levels and market sentiment will be crucial in determining the sustainability of this rally. If DOGS can maintain its current momentum and break above the critical Fibonacci extensions, it could continue to rise.