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Dogecoin seems ready for a breakout after crossing $0.2900 resistance

Cryptopolitan


TL;DR Breakdown

  • Dogecoin price is points higher than the critical demand zone originating from $0.262 – $0.281.
  • DOGE is cutting short a 16-day long descending triangle that begun on August 18.
  • Sellers are targeting to correct lower than the 20-day EMA at $0.28

Dogecoin is points higher than the critical demand zone originating from $0.262 – $0.281 after the meme coin managed to flip resistance in this area into support almost a week ago. DOGE/USD pair has been trading with mixed results on the 5-day chart before yesterday’s breakout above the $0.2900 major resistance level. Bulls have a chance to steer a rapid rally all the way to $0.3600 if they can uptick buying pressure. 

Cryptocurrency Heatmap Image by Coin360

Two price barriers are lying between the press time price of $0.3020 and the upper $0.3670 target. The first barrier lies at the $0.3280. According to transaction data from Glassdoor, buyers will easily reach $0.3670 after overcoming the first barrier and hence steer the price action to a 30 percent rally.

Today’s Dogecoin price analysis seems to be shifting momentum towards a rising wedge that could stop a 16-day long descending triangle that began on August 18 from the $0.3500 swing high. The bulls are aggressively campaigning for a strong rally, as shown in the 1-month chart below, which, if successful, Dogecoin price action could stop at $0.3500 in the course of the day. 

Dogecoin price analysis
Dogecoin 1-month chart by TradingView

On the contrary, the bears are attempting to short-sell near $0.28 and flip support near this area into resistance. $0.28 is also Dogecoin’s 20-day exponential moving average. If the price turns down from the current price action, this could activate the August 18 downtrend and result in a decline towards the $0.21 crucial support. 

Dogecoin price movement in the last 24 hours: Ascension past August falling wedge

On our 24-hour Dogecoin price analysis candlesticks, the meme coin is trading within a tight range of $0.29 – $0.31. The price volatility is low, suggesting inactivity across the daily trading session. A potential upside could cap after crossing the resistance, but the dangers of a sudden downturn are high due to pullback pressure around this danger zone. 

Unless the bulls are able to cross the $0.3200 barrier, traders can still expect a bearish trendline in the course of the day. Nonetheless, TD’s sequential indicator is showing a sell signal near the press time price of $0.31.

Another positive signal is indicated by the mid-point cutting between the RSI and the flattening 20-day EMA, which suggests a balance between demand and supply in the current zone. And since the bulls are set out for a breakout in the near short-term, they could likely steer price advantage in their direction. 

DOGE/USD 4-hour chart: MACD bars are green

The 4-hour MACD indicates momentum is in favor of the bulls as they try to push the price and set a higher intraday high.  Bollinger Bands are expanding, suggesting high chances of increasing activity in the next 24 hours. The hourly candlesticks have also crossed above the daily moving average, which paints a bullish signal for traders. 

Dogecoin price analysis
4-hour Dogecoin chart by TradingView 

Dogecoin price analysis conclusion: Memecoin is poised to continue rallying to $0.367

Dogecoin price action is currently breaking out of a falling wedge pattern. Sellers are targeting to correct lower than the 20-day EMA at $0.28. Resistance lies at $0.29, $0.3200, and the chances of a successful rally depend on the bulls’ ability to overcome both barriers. Meanwhile, we expect Dogecoin’s price to continue rising in the next 24 hours and perhaps find rejection at $0.3670. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.



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