In the recent trading sessions, Dogecoin price has witnessed an upward trend, breaking a major resistance level. Over the past 24 hours, DOGE has recorded an increase of 1.2%, and over the past week, the currency has appreciated by 2%.
Technical analysis indicates the possibility of an upcoming bullish momentum as buying strength attempts to recover. However, the demand and accumulation indicators have not yet entered the positive zone.
To establish bullish control in the subsequent sessions, DOGE must break the crucial resistance level. A broader market recovery, including Bitcoin’s rally above $27,500, could contribute to DOGE’s bullish price action.
The upcoming trading sessions will be crucial in determining whether the bulls or bears will determine the price action. However, the decline in Dogecoin’s market cap indicates the current seller dominance of the asset.
Dogecoin price analysis: intraday chart
At the time of writing, DOGE is trading at $0.073 and has shown gradual gains since it crossed the $0.070 resistance line. However, a potential price correction might occur if it fails to breach the general resistance.
The immediate resistance level for DOGE is set at $0.075. A break above this level is likely to lead to a rally towards the $0.078 level, which would strengthen the position of the bulls.
Conversely, if DOGE fails to maintain its current price level, it could drop to $0.071 and possibly drop below $0.070. The last trading session indicated weak buying power, as the amount of Dogecoin traded was in the red.
Technical Analysis
During the month of May through April, Dogecoin faced challenges attracting positive demand. For now, the buying power remains low despite the ongoing recovery.
The RSI indicates that buyers still lack confidence in the asset, as it is below half of the line. Moreover, DOGE price fell below the 20 simple moving average (SMA) line, which indicates that sellers are driving the price momentum in the market.
However, if Dogecoin can clear the $0.070 price level, it will move above the 20-SMA line, which indicates an increase in demand and possibly a reversal of the current trend.
On the one-day chart, DOGE is showing bearish buy signals in line with the other technical indicators. The Moving Average Convergence Divergence (MACD), which indicates price momentum and trend reversal, showed a green bearish histogram correlating with buy signals.
In addition, the Bollinger Bands, which reflect price fluctuations and volatility, have shown significant narrowing. This indicates that DOGE may experience increased price volatility and volatility in the upcoming trading sessions.
Currently, DOGE is positioned at a critical price level, and the next trading sessions will determine whether the price explodes to the upper or lower side.
Featured image from UnSplash, charts from TradingView.com