Despite the dominant bearish trend in the market, the well-known meme-based cryptocurrency Dogecoin (DOGE) is making an effort to recover. This unanticipated upward trend occurs even though sentiment and general market conditions are still primarily negative. Traders and investors are keeping a careful eye on the situation as DOGE attempts to make up some lost ground, trying to decipher what this possible turnaround might mean.
Several factors could be driving this attempt at recovery, including market reactions to news events, changes in investor sentiment, or technical indicators signaling oversold conditions. However, the question remains: can DOGE sustain this rebound and reverse the bearish trend, or is this merely a temporary uptick before further declines?Â
This introduction delves into the dynamics behind DOGE’s current price action and explores what investors might expect in the near future.
As of this writing, DOGE has a market capitalization of over $20 billion, a trading volume of over $715 million, and a price increase of 1.33%, trading at around $0.14297 over the past 24 hours. The market capitalization and trading volume of DOGE has experienced a decline of 0.73% and 43.92%, respectively.
DOGE Upswing Analyzed
While the price of DOGE is currently trading below the 100-day Simple Moving Average (SMA), an analysis of the price movement on the 4-hour chart shows that DOGE is attempting an upswing by dropping bullish candlesticks.
Also, given that the 4-hour composite trend oscillator indicator’s signal line has crossed above the SMA and is moving towards the zero line, it supports the previous assertion that the price of DOGE may increase.
On the 1-day chart, DOGE’s price is attempting a bullish move by developing a bullish candlestick while trading below the 1-day SMA. What this indicates is that DOGE’s price may move upward and at some point, it might start to decline again.
The signal line and SMA of the composite trend oscillator indicator on the 1-day chart have made a cross and are attempting a drop below the zero line. This supports the above claim that at some point DOGE’s price might begin to drop again.
Bullish Or Bearish Trajectory?
If this upswing continues, the price of DOGE will advance towards the $0.14911 resistance level, despite DOGE’s continued pessimistic outlook. DOGE might climb higher to challenge the resistance level of $0.16490 if it breaks above the $0.14911 level. Should there be a break above the previously indicated level, the crypto asset may turn bullish.
There is a tendency that DOGE’s price will begin to decline toward the $0.13580 support level if it fails to break above the $0.14911 level. The crypto asset will decline further to challenge the $0.12014 support level in the event of a break below the $0.13580 level and even other levels after that.
Featured image from iStock, chart from Tradingview.com