Key Takeaways
- Despite falling 47% YTD, DOGE has broken out of a symmetrical triangle on the 4-hour chart.
- The AO has flipped positive, indicating bullish momentum, while the CMF is above the zero line.
- On the daily chart, DOGE has exited a descending channel and trades above the 20 EMA.
This year, Dogecoin’s (DOGE) price has dropped by 47%. This decline happened due to low demand for the coin and intense selling pressure at some point.
However, as of this writing, it appears that things are ready for change for the better. Trading at $0.17, Dogecoin’s price has risen nearly 5% in the last 24 hours, with its volume surging almost 300% within the same period.
But will DOGE’s price hold this trend? Let’s find out.
Dogecoin Hints at Higher Highs
On the 4-hour chart, Dogecoin’s price traded in a symmetrical triangle between mid-June and Sunday, July 6. This pattern indicates a consolidation phase, with bulls and bears having a similar level of control.
However, as of this writing, DOGE has broken out of the upper trendline of the triangle pattern. This breakout indicates bulls seem to be outpacing bearish dominance.
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If sustained, this could cause DOGE’s price to break the resistance at $0.19, with support at $0.16. Following the breakout, the Awesome Oscillator (AO) has risen to the positive region in the same timeframe.
The rise in the AO indicates bullish momentum. If sustained, this could help Dogecoin erase some of its losses this year.
Echoing this outlook, pseudonymous crypto analyst Rekt Capital suggested that Dogecoin’s price may be primed for an extended bounce.
In his latest analysis of the altcoin market, Rekt Capital highlighted the potential for DOGE to rebound toward higher highs, citing improving momentum and historical breakout patterns.
“DOGE simply maintains a range-bound construction between $0.16 and $0.22. So, price stability here should enable a future revisit of the Range High over time,” The analyst stated .
DOGE Price Analysis: Sights on Recovery
The daily DOGE/USD shows that the cryptocurrency has broken out of a descending channel. This breakout was fueled by rising buying pressure, as the Chaikin Money Flow (CMF) indicated.
As of this writing, the CMF has maintained its position above the zero signal line. This indicates that accumulation has outpaced distribution, and DOGE’s price could trade higher.
Beyond the CMF reading, DOGE’s price has risen above the 20-day Exponential Moving Average (EMA) (blue), which indicates strong support for the cryptocurrency.
As long as this remains the case, DOGE’s price might rise toward $0.20 in the near term. Should the crypto break past this level and buying pressure increases, the market value could rise to $0.25 at the 0.618 golden ratio.
Meanwhile, traders need to watch out. If DOGE falls below the falling channel upper trendline, this prediction might not happen.
In that scenario, the cryptocurrency’s market value might drop to $0.13. If selling pressure increases, the price might decline below $0.10.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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