Despite the recent setbacks in the cryptocurrency market, Dogecoin (DOGE) continues to showcase its resilience, riding on the bullish wave that has swept through the meme coin and altcoin sectors in recent weeks. As of now, Dogecoin boasts a market cap of approximately $17.30 billion, with its current trading price hovering around $0.1184. Over the past seven days, the beloved meme coin has experienced a 9.01% increase, culminating in a robust 16.95% gain by Sunday.
Recent Price Movements And Trends
With a surge in volatility marking the last few days, Dogecoin is trading at $0.11836. Investors and traders are now asking the critical question: will this volatility lead to an uptrend continuation towards $0.17? Recent technical analyses reveal some promising signs. The daily chart indicates a falling wedge breakout rally, a pattern that typically suggests bullish momentum. Notably, Dogecoin has managed to reclaim the crucial psychological mark of $0.10, peaking at $0.13 before retracing to retest the 100-day Exponential Moving Average (EMA).
The formation of a piercing candle suggests that Dogecoin is gradually building bullish momentum while maintaining its higher-low trend. Price action analysis indicates that upcoming resistance levels could be projected at $0.14026, $0.17394, and $0.22008.
Short-Term Indicators and Long-Term Gains
While the market seems to show short-term bullishness, there are cautionary signs. On Monday, increased supply led the MACD and signal lines to near a bearish crossover, hinting at potential downward pressure. However, an intraday recovery could extend the anticipated bullish trend, providing some optimism for Dogecoin holders.
In the 4-hour chart, a recent pullback on Monday broke below the 61.80% Fibonacci level at $0.11807, further breaching the 50-day EMA but finding support from the 100-day EMA. Dynamic moving averages on this chart still indicate a positive trend, reinforcing the notion of short-term bullishness. Moreover, a rounding-bottom reversal pattern could play out, potentially driving the price toward $0.1387 or the 100% Fibonacci level.
Despite the bullish outlook, Dogecoin struggled to maintain levels above the 78.60% Fibonacci level at $0.12717, leading to a drop near the 50% EMA at $0.1168. Based on the Fibonacci retracement levels observed on the 4-hour chart, a continuation of the uptrend with a rounding-bottom breakout rally is likely to target the $0.17226 level or the 1.618% Fibonacci extension.
Also Read: Dogecoin (DOGE) Surges 4.96% – Can Rising Active Addresses Propel It To $1.60?
Support and Resistance Levels
Traders should keep a close eye on critical support levels, which stand at $0.1168 (50% Fibonacci) and $0.10528 (38.20% Fibonacci). These levels will be pivotal in determining whether Dogecoin can sustain its bullish trend or if it will succumb to further market volatility.
As the crypto market navigates through turbulence, Dogecoin remains a beacon of hope for investors seeking potential gains. With strong technical indicators and a recent uptick in price, DOGE might just be on the brink of another bullish rally. Whether it can break through resistance levels and reach the coveted $0.17 mark remains to be seen, but for now, the meme coin continues to capture the attention of traders and enthusiasts alike. As always, investors should proceed with caution and conduct thorough analyses before making any trading decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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