The meme coin Dogecoin (DOGE) has seen a recovery in price after surpassing key resistance levels and attracting renewed buying interest. DOGE rose to a weekly high following the introduction of the new “X Payments” account on social media platform X, formerly known as Twitter.
The X Payments account, which has already gained over 100,000 followers, is speculated to potentially integrate Dogecoin for payments, although this remains unconfirmed.
Dogecoin’s price rose above the $0.085 level, leading to a notable increase in profitable addresses holding the asset, according to data from on-chain analytics firm IntoTheBlock.
Profitable addresses now account for 64.8%, or 3.5 million of the total, indicating the potential for greater selling activity from these holders amid Dogecoin’s continued low volatility.
Will Dogecoin surge following X Payments launch?
This has presented challenges for DOGE in firmly surpassing the $0.09 threshold, as approximately $400K worth of short positions were liquidated within the past 24 hours.
The influx of these liquidations has strengthened resistance at this price level, intensifying the coin’s struggle to advance further from its current point. Around 788K addresses presently hold more than 37 billion DOGE near this level, and any sharp rejection could trigger a rapid decline back to pre-surge lows.
The potential for Dogecoin payments on X hinges on CEO Elon Musk’s “everything app” strategy for the platform, which he has hinted could materialize by mid-2024.
After attempting to break above $0.09, Dogecoin faced increased selling pressure and a strong rejection down to its current level of $0.0845, a 3.7% decline from yesterday. However, buyers remain confident in defending against a drop below key moving averages around $0.081.
While the stable 20-day exponential moving average (EMA) and the relative strength index (RSI) remaining above the midpoint signal a balance of supply and demand, Dogecoin’s next move remains uncertain. A reversal or break above the 20-day EMA could see bulls make another push past $0.09 and potentially above $0.10.
On the other hand, a break below the EMA trendlines would suggest waning momentum for buyers. In that scenario, bears would likely push the price down toward the substantial support zone between $0.07 and $0.075. Traders await clearer direction on whether renewed interest in DOGE can be sustained.