DOGE Price Forecast: This Bullish Dogecoin Metric Surged 860% in October: Here’s What to Expect

Dogecoin Price Analysis:

Dogecoin price fell towards $0.14 on Wednesday October 23, down 7% in the last 24-hours as a market-wide correction has truncated DOGE’s 11 day winning streak. However, on-chain data shows an 866% surge in Dogecoin market liquidity during the October rally.

Could this fortify Dogecoin’s price resistance to downward volatility in the days ahead?

Dogecoin Dips 7% as Crypto Market  Overheats

Dogecoin’s price action in October has been largely positive, driven by a slew of bullish comments from Billionaire Entrepreneur Elon Musk as he joined Donald Trump’s campaign trail for the 2024 US Elections.

The global crypto sector overheated on Monday, triggering massive liquidation across the derivatives markets, effectively ending a 2-week long rally. By close of Tuesday Oct 22, DOGE price had recorded its highest single-day loss in 12-days.

Between Oct 10 and October 22, DOGE price entered a blistering 45% rally, moving from $0.103 to 130-day peak of $0.15. However, as the correction phase set in on Tuesday, DOGE has now retraced % towards the $0.14 level at the time of writing on Oct 17.

Dogecoin Shows More Resilience Compare to Rival Assets

Prior to the correction phase, Dogecoin’s 45% gains saw it emerge one of the top performers among the 20-largest cryptocurrency assets. Under those overbought conditions, DOGE appeared at risk of large downward volatility.

But surprisingly, while rival memecoins Shiba Inu (SHIB) and PEPE recorded double-digit losses in the last 24-hours, DOGE has shown more resilience keeping its daily timeframe losses at 8.4% as depicted above.

866% Liquidity Surge Provides Buffer Against Bearish Headwinds

When a high-performing and seemingly overbought asset outperforms rivals during a market-wide correction phase it signals the presence of critical internal fundamentals, offering strong support.

In the case of Dogecoin, on-chain data shows that the initial price 45% rally in October was accompanied by a remarkable surge in market liquidity and not just driven by speculative traders betting on Elon Musk’s comments.

Emphasizing this narrative, IntoTheBlock chart below tracks the dollar value of DOGE transactions executed daily.

Dogecoin daily Transaction Volumes rose from the monthly lows of $89.9 million Oct 5, to a peak of $860.2 million on Oct 18 reflecting an 866% surge in market liquidity. More so, this is the highest trading volume DOGE has recorded in over 3 months, dating back to June 7, 2024.

Such high market liquidity provides strong buffer against bearish headwinds, helping the underlying asset defend relatively high support levels during a markt correction phase.

DOGE Bulls Set to Mount Strong Support

In essence, this 866% surge in DOGE transaction volumes in October ensures that large sell-orders can be absorbed without causing significant price downswings, even during volatile conditions.

This partly explains why DOGE price has booked significant lesser losses compared to the likes of SHIB and PEPE as the crypto markets tumbled in the last 24-hours.

More so, following the market dip, DOGE transaction volume is still trending at $535 million at the time of publication, close to last months peak of $540 million recorded on Sept 24.

This, sustained liquidity uptrend suggests that despite the price dip, Dogecoin continues to find buyers. If major investors and market makers continue to trade in large volumes, as observed in the last 24-hours this could creates a safety net for bull traders, looking to defend the $0.14 support level.

DOGE Price Forecast: Bulls to Huddle Around $0.13 Support

Despite the 8% price correction in the last 24-hours Dogecoin (DOGE) trading  volume is still trending near last month’s peak, indicating that buyers are not yet fatigued.

The Parabolic Stop and Reverse (SAR) indicator on the DOGEUSD daily chart below also confirms this optimistic outlook. When the SAR dots move below as asset’s current price during a market dip, it indicates strong bullish support and potential for quick rebound.

In terms of short-term price action, the $0.13 level represents a crucial support, coinciding with the SAR signal. Without another major negative catalyst, bears could face difficulty forcing a breakdown below this mark.

More so, the Average Day Range (ADR) signal trending at 0.00834 indicates moderate volatility, implying that while short-term swings may occur, they won’t be overly extreme. This further reinforces DOGE’s potential for stable price consolidation within the $0.13 to $0.15 range, amid the market blip.

On the upside, key resistance lies at the $0.17 local top. If DOGE sustains current momentum, this level could become the next target during the next market uptrend.

In summary, strategic Dogecoin traders will be monitoring both the $0.13 support and the $0.175 resistance for decisive price movements in the near term.