Dogecoin The pair is starting to make waves again, with bulls rallying after a break of the major trend line that could spark a new upside wave. After a period of sideways movement, momentum has shifted in favor of buyers, who are now focused on the $0.1293 target. This break could mark the start of a major uptrend, but the real test lies ahead – can bulls maintain the momentum, or will the overhead resistance halt their assault towards new highs?
This article seeks to analyze Dogecoin’s recent trendline breakout and the potential for further upside. We will delve into the technical indicators driving the bullish momentum, assess key resistance levels, and determine whether bulls have enough strength to push the price towards the $0.1293 level.
In the past 24 hours, DOGE has been trading near $0.1068, representing a 4.68% increase. The cryptocurrency’s market cap has risen to over $15.5 billion, while the trading volume has surpassed $717 billion. During this period, market Market value and trading volume increased by 4.70% and 71.33% respectively.
Technical indicators point to strong upside potential.
Recently, Dogecoin price on the 4-hour chart turned bullish after breaking through a major trend line. The price is now consolidating above the 100-day simple moving average (SMA), indicating that bulls are maintaining control.
Specifically, a position above the 100-day simple moving average often reflects an underlying uptrend. batchIf this trend continues, it could pave the way for further upside movement. However, breaking out of this consolidation range will be crucial to determine the next stage of the rally.
The 4-hour Composite Trend Indicator analysis shows that bulls are firmly in control of the market. Both the signal line and its simple moving average have moved into the overbought zone, indicating strong bullish momentum. This situation suggests that the current uptrend still has room to grow, with Dogecoin price potentially rising to higher levels in the near term.
DOGE, on the daily chart, is currently trying to move towards the 100-day SMA after breaking the downtrend line. With this recent bullish momentum and the break of the trend line, the digital asset could extend its rise towards the $0.1294 resistance level.
Finally, on the 1-day chart, the Composite Trend Oscillator also indicates increasing positive strength for Cryptocurrency As the signal has crossed above the simple moving average of the indicator and both lines are trying to move out of the oversold area towards the zero mark.
Upside Potential vs. Downside Risk: What’s Next for Dogecoin?
Dogecoin’s recent bullish momentum presents a strong upside potential, especially after breaking a major trend line. If the price can sustain its position above the 100-day SMA, it is likely to move towards $0.1293 and other resistance levels.
However, downside risks remain, including overbought signals on major indicators that could lead to a short-term pullback towards the $0.09149 support level. A break below this support level could signal a deeper downtrend, leading to additional price declines towards further lower levels.
Featured image from Unsplash, chart from Tradingview.com
Comments are closed, but trackbacks and pingbacks are open.