Dogecoin has been on firm upward movement,moving from a weekly low of $0.0703 to the intraweek high of $0.0812, pushing through the key resistance level of $0.080 in the process. The cryptocurrency has been slowly building momentum since early January,with a few minor dips along the way.
Dogecoin is exchanging hands at $0.08054, up 2.90% in the last 24 hours and with a 24 hour trading volume of $623,461,382.Dogecoin’s price has been fluctuating between $0.72 and $0.080 for several weeks, with a breakout prompting a surge in price in the coming weekend. Dogecoin is expected to benefit from further upside momentum as investors pour into the market and continue pushing prices higher.
The recent move up is likely due to a combination of technical factors as well as ongoing bullish sentiment surrounding the cryptocurrency market.There was a clear move above the $0.078 resistance zone to set the pace for a decent increase. The price cleared the 23.6% Fib retracement level of the recent wave from the $0.073 low to the $0.080 high and managed to stay above it.The Fib extension levels suggest further upside potential in the coming sessions.
The technical outlook is bullish, as long as prices remain above the $0.078 support level. Any dips from current levels are likely to be bought into and could propel the price towards $0.081-85 resistance zone in the near term. A break above this level could set the stage for a push towards $0.09 in the medium term.On the downside, immediate support is located at $0.078 and below that at $0.075 level. A break below this support could trigger further losses in Dogecoin’s price.
The technical indicators are painting a bullish continuation as the green candlesticks on the daily chart show strength in the bulls. The MACD is moving in a bullish zone, indicating further buying pressure.The RSI is also hovering around the overbought territory, suggesting that buyers are still in control of DOGE’s market direction.
Therefore, it appears that the bullish momentum for Dogecoin could continue as DOGE/USD pair has formed a bullish pennant pattern on the daily chart. The price is likely to break out of this pattern soon and could be poised for further gains in the near term.
The Bollinger bands are expanding which is a sign of increasing market volatility, and could likely help DOGE/USD pair extend its gains if the bulls remain in control. The upper band is located at $0.082, and if the price breaks above that level, it could signal further gains for Dogecoin while the lower band at $0.077 is likely to provide strong support on dips.
Overall, it appears that Dogecoin’s bullish momentum could continue as prices remain above the key support level of $0.078, and a break out of the current pennant pattern could see further upside in DOGE/USD pair.With key support levels at $0.078 and $0.075, traders should watch for any signs of a possible pullback incase the bulls lose steam.
