Dogecoin (DOGE) has surged to a new high in 2023, surpassing the significant $0.10 threshold on Sunday, December 10. This marks a weekly gain of 20%, and indications from on-chain trading metrics suggest that the momentum is poised for further acceleration.
Analysis of the Aggregate Exchange Order Books by IntoTheBlock reveals a bullish outlook for Dogecoin’s price. Data extracted from the trading logs of major crypto exchanges, including Binance, Kraken, and Coinbase, underscores the heightened demand from retail DOGE traders in the spot markets.
Currently, buy-orders for 745 million DOGE are active at an average price of $0.102, surpassing the 684 million DOGE offered for sale at current prices. This creates an excess demand of 61 million DOGE across prominent crypto exchanges and spot trading platforms.
Dogecoin Dominates Exchange Order Books With Excess Demand Of Nearly 61 Million DOGE
The Exchange Order Books chart, illustrating the distribution of buy/sell orders for a specific cryptocurrency across exchanges, emphasizes that Dogecoin’s market demand significantly outweighs its supply by almost 61 million DOGE.
This signals a continued attraction of demand despite achieving a new yearly peak, with fewer holders showing interest in selling. The surplus demand implies upward pressure on prices, potentially driving Dogecoin towards the $0.15 mark in the upcoming week.
From an on-chain perspective, the increasing volume of buy orders suggests a potential upward movement for Dogecoin’s price to reach $0.15. However, the bulls need to overcome the initial resistance at approximately $0.11 to validate this prediction.
The daily time frame, as indicated by the Bollinger Band technical indicator, further supports this bullish outlook. Currently, DOGE faces a challenge at the Upper Bollinger Band of $0.105, and a decisive breakout above this range could propel Dogecoin’s price to a new 2023 peak above $0.15, a level not seen since November 2022.
On the downside, the bears could disrupt this positive price prediction if they manage to initiate a downswing below $0.06. Nevertheless, the support buy-wall around the lower Bollinger band at the $0.07 area is anticipated to present strong resistance in the short term.