- The DOGS token formed a bullish pattern with a potential breakout and a price target of $0.0012000
- 65% of DOGS holders made profits, indicating a potential for upward price movement
DOGS tokena new memecoin on the TON blockchain, is gaining attention within the crypto community due to its recent price performance. However, despite recording a slight price decline over the past week, analysts believe a bullish reversal may be in store.
At the time of writing, DOGS was priced at $0.001038with a 24-hour trading volume of $310,482,455. This represented a small decline of 0.36% in the past 24 hours and a decline of 3.65% in the past week. With a circulating supply of 520 billion DOGS tokens, the press time market cap was $534,686,829.
Technical indicators point to a bullish reversal
Mikybull Crypto, a crypto analyst, noted that DOGS appear to form a technical pattern known as an inverted head and shoulders. This is often seen as a bullish reversal signal.
The pattern, characterized by three troughs of which the middle one is the deepest, is usually followed by a breakout above a ‘neckline’.
Source: TradingView
The price of DOGS seemed to form this pattern. And a potential breakout above the neckline could lead to a price target of $0.0012000.
Furthermore, the 50- and 100-period exponential moving averages (EMAs) were both at $0.0010400, indicating that the market may be in a consolidation phase. Simply put, the price is now trading close to these resistance levels, which could lead to further indecision between buyers and sellers.
The Relative Strength Index (RSI) at the time of writing was reading 46, slightly below the neutral level of 50. This meant that while there was bearish momentum, the market was not in oversold territory. This left some room for a possible upward move.
Source: Trading view
Growing popularity on the TON blockchain
The growing popularity of DOGS on the TON blockchain also fuels optimism. Since the Token Generation Event (TGE), which claimed 17 million tokens within the first two weeks, user interaction with the token has increased dramatically.
This increase in activity has helped drive adoption of the TON blockchain, further growing DOGS to become one of the most widely used tokens across multiple blockchains.
The surge in transactions and user engagement suggests that interest in DOGS continues to grow despite recent price fluctuations. As the token gains more holders and becomes more widely traded, the potential for price recovery may become greater.
In/Out of the money data provides insight
Finally, data about the chain gave us more context for DOGS’ market position. At the press time price of $0.001032, approximately 65.11% of addresses were ‘In the Money’, meaning these investors bought the token at a lower price.
Meanwhile, 23.96% of addresses were ‘out of the money’, having purchased at higher prices. 10.93% was ‘At the Money’, where the purchase price was close to the going price.
Source: InTheBlok
Taken together, this data showed that a majority of investors are now in a profitable position. This could lead to increased buying pressure if the bullish reversal continues.