Dogecoin (DOGE) saw a 1.85% price increase over the last 24 hours, with the price rising from $0.07513 up to $0.07655 as of July 25, 2023. Here are some key observations from the recent market data:
Breakout Above Falling Wedge Pattern
DOGE broke out above the descending trendline of a falling wedge pattern on the 4-hour chart. This technical breakout is a bullish signal that could lead to a continued move higher. The next resistance level to watch is around $0.08.
Trading Volume Explodes Higher
Trading volume over the past 24 hours exploded higher to $1.61 billion. This significant surge in volume indicates increased interest and participation in DOGE recently. Higher volume adds confidence to the sustainability of the breakout.
RSI Pushes Into Overbought Territory
The daily RSI crossed above 70 which puts it in overbought territory after the latest move higher. This indicates the rally may be extended and raises the chance of a short-term pullback to allow the RSI to reset.
Prediction: Continuation Toward $0.10
My prediction is DOGE will see continuation higher over the coming days and weeks. The breakout has room to run toward the next target at $0.10. I expect any dips to find support near $0.07-$0.075. Upside appears the path of least resistance barring any major shift in sentiment.
Is Now the Time to Buy Dogecoin?
With DOGE rallying 11.71% in the last week and breaking out above a key falling wedge pattern, many traders are eyeing entry. Dollar cost averaging can help reduce the risks around timing. Waiting for a retest of the breakout level around $0.075 would provide a lower risk entry. However, the strong surge in volume implies buyers are firmly in control.
Can Dogecoin Start a New Sustained Uptrend?
Dogecoin has seen nice gains in recent weeks, but the question remains whether this can start a new sustained uptrend. On the weekly chart, DOGE is trying to form a higher low and break the series of lower highs.
To confirm the start of a new uptrend, I'd want to see DOGE reclaim the $0.10-$0.12 zone on the weekly chart. This area marks the 50-100 week moving average and Fib resistance zone. In summary, DOGE must clear key resistance levels to confirm a trend reversal. Near-term momentum is turning positive but work remains.
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