The Dogecoin price might go up even more if it breaks out of the double bottom pattern, boosting its recovery.
Despite the overall market retracement, Dogecoin has shown an impressive recovery in the past three days, consistently rising. The price surged by 20%, reaching a peak of $0.087, possibly fueled by exciting news about a Dogecoin mission to the moon. Now, the question is whether this momentum can push the memecoin above the $0.01 mark.
Bullish Pattern Suggests Potential Rally to $0.11
The Dogecoin price has been on the rise for five consecutive weeks, showing sustained momentum and a notable increase in trading volume. The 20-day Exponential Moving Average (EMA) slope is providing dynamic support to the upward price movement. With a 24-hour trading volume of $1.9 million, Dogecoin has seen an 87% gain.
Over the past 30 days, Dogecoin’s price has experienced a steady recovery, climbing from $0.057 to the current trading price of $0.082, marking a gain of 45%. Despite two pullbacks, buyers have demonstrated resilience in absorbing selling pressure and initiating strong comebacks.
Analyzing the daily timeframe chart, a bullish ‘Double Bottom’ reversal pattern is forming amid this rally. Today, the DOGE price surged by 10%, nearing the pattern’s neckline, potentially triggering this bullish formation.
A crucial development to watch is a daily close above $0.083, which could transform this resistance level into a support platform. This shift might pave the way for a 32% surge towards the dual resistance at $0.11, identified by a downtrend line. Breaking this dynamic resistance could signal a significant trend reversal, considering its pivotal role in the correction phase.
Balanced Retracement Paves the Way for Stronger Recovery
While the DOGE price appears to be on an upward path, occasional pullbacks could occur, contributing to the consolidation of bullish momentum. Historical data indicates that these corrections often align with the 50% Fibonacci retracement level, a reliable indicator of a substantial pullback. Therefore, investors may find strategic points at the 50% or 38.2% Fibonacci levels for placing stop-loss orders or reevaluating their positions.
Analyzing the Stochastic Oscillator, the rising slopes in both the %K and %D lines indicate active bullish momentum, further supporting the positive trend. In addition, the Exponential Moving Average (EMA) displays a ‘golden crossover’ between the 50-day and 200-day EMAs. This crossover has the potential to enhance buyer confidence, contributing to the ongoing recovery of DOGE.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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