Dogecoin bulls should manage to hold their price after a 27% surge on August 5. The much-needed rally came after DOGE traded largely sideways since late July. So what does this mean for the popular meme coin? Is there another price hike on the table? At the time of this writing, the alt was trading at $ 0.267 and was ranked seventh on CoinMarketCap’s crypto rankings.
Dogecoin daily chart
The key to Dogecoin’s move seemed to be closely tied to its 200-SMA (green). The long-term moving average line has provided support for DOGE for the past few weeks and has even prevented a prolonged market crash at times. On the 4-hour chart, this situation was slightly different.
The 200-SMA has been bearish since May 19 and rejected multiple breakout attempts in recent months. This trend finally turned around last week when DOGE broke its June 17 high of $ 0.205 and posted a 3-week high of $ 0.283. However, prices were still within the limits of a horizontal channel on the daily chart and were expecting a key move in the next few days for another rally. A close above the June 25 high of $ 0.289 could likely be the catalyst for such a move, in which case another 19% rally towards $ 0.340 was possible.
Last week, the RSI rose above 55 for the first time in almost two months. The index even maintained its trajectory and pointed to a second peak in the overbought zone. A move above 70 would increase the chances of a higher rise before sellers enter the market.
The Awesome Oscillator also noticed a clear increase in buying momentum over the past few days. Furthermore, the ADX also rose above 25, which indicated a strengthening trend of the market. While these factors were certainly favorable for another DOGE rally, the lower time frame (4 hours) highlighted several bearish divergences. What this meant was that DOGE traders might have to stay calm before their next upward leg. In fact, a minor pullback was also on the table before the anticipated rally.
DOGE needed to close above $ 0.289 on its daily chart for its next big move. Prior to such a result, prices could pull back slightly as the lower time frame noted some bearish divergences on the RSI and MACD (not shown). Traders can buy DOGE in case the price drops to $ 0.227 and half of its pattern.
This is a machine translation of our English version.
Your opinion is important to us!