The short-term downtrend in the DOGE price made a new lower low at $0.137. The technical chart indicated strong support from this level and initiated a recovery rally. Today, a recent tweet from the billionaire Elon Musk that all Tesla merchandise can be bought with Dogecoin triggered a sudden pump in its coin price.
Key technical points:
- The daily RSI line jumps above the neutral zone
- The 24-hour trading volume in the Dogecoin coin is $5.6 billion, indicating a 242% gain.
Source-Tradingview
In our last DOGE price analysis , the DOGEUSDT pair gave a bearish breakdown from a monthly support level around $0.16. Violating this crucial support, the coin attracted even more sellers in the market.
However, the price obtained intense demand pressure from the December 4th low, which pushed the price back above the broken support and the long coming descending trendline.
The recent recovery has engulfed the 20 and 50 EMA line, which is a good start for a new rally; however, the coin is still trading below the trend defining 100 and 200 EMA, projecting a bearish trend.
The daily Relative Strength Index (60) shows a striking pump above the neutral line(50) and 20-SMA, entering the bullish territory.
$0.19 Mark Is Still A Formidable Hurdle For Dogecoin
Source- Tradingview
From early December of 2021, the DOGE price has been resonating in a confined range between $0.19 and $0.137. After its recent recovery from this bottom support($.0137), the price has re-challenged the top resistance (0.19).
Even though the price has provided a closing above this $0.19 mark, the coin should sustain its retest phase to confirm a buying opportunity.
The DOGE price has breached the upper band of the Bollinger band indicator, indicating strong buying pressure in the price.
The average directional movement index(47) slope is rising with respect to the trending price, supporting the bullish momentum.
- Resistance levels- $0.19 and $0.225
- Support levels- $0.16 and $0.137
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/97428-2/