How far does Dogecoin’s incredible bullish moment go?
Dogecoin saw its price rise over the past week and was able to maintain a steady upward trend. However, the latest trading sessions have shown that the unrestricted bullish trend is now in contact with a key resistance level and, in the short term, DOGE may see its bullish trajectory hampered.
To date, DOGE was traded at $ 0.40 and had a market capitalization of more than $ 53 billion. In the past 7 days, the currency has seen a price increase of more than 460% and has maintained a 24-hour trading volume of $ 34 billion.
Dogecoin 4 hour chart
Source: DOGE / USD, TradingView
Dogecoin’s price action was very promising last week and the same trend has continued for the past 24 hours. However, after reaching the $ 0.40 price range, the currency is now in contact with extremely strong resistance at around $ 0.45. Some trading sessions earlier in the day saw the currency fail to break through this resistance and if that continues, a small correction could occur pushing the price closer to the $ 0.34 support.
The next level of support for Dogecoin is around $ 0.26; however, in the short term, such a drastic drop is not likely, given the current market scenario. For DOGE to continue its bullish trend, immediate resistance needs to be overcome in the next 12 hours, or traders can expect a slight price correction.
The technical indicators for Dogecoin look promising at the moment. However, they also show signs of reversing the trend in the short term. The RSI indicator is currently in the oversold zone, but given Dogecoin’s market performance in the past, the RSI may soon start moving towards the neutral zone. In such a scenario, the price may fall slightly or begin to be traded laterally.
The MACD indicator went through a bullish cross with the line and managed to stay above the signal line; however, a reversal seems likely, as the signal line continues to move closer to the MACD line – indicating a short-term bearish approaching the market.
Dogecoin’s price has risen quite dramatically in the past week and the currency may continue in this upward trend if it is able to overcome its immediate resistance. However, if that breach does not materialize the next day, the currency could suffer short-term losses, moving closer to the $ 0.34 price range.