Dogecoin (DOGE) recently retested its crucial support point of $0.14 after a massive price rally. It successfully retested to support before prompting yet another rally toward resistance (at $0.16) per popular cryptocurrency analyst Rekt Capital. The meme coin saw an almost 16% increase in the last 24 hours
Dogecoin’s Technical Analysis Insights
Dogecoin’s price trend over the last couple of days has been noteworthy. Following lows in the $0.14 vicinity, it underperformed but rebounded with vigour, clearing intermediate resistances without much difficulty.
A critical juncture is highlighted in red on technical charts at the $0.14 level. Early trade saw this level become a resistance before it was re-established as a support zone again. Such behavior reveals that investors and traders are getting bullish.
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The next notable resistance is around the $0.16 level, marked in blue on the charts, and it’s moving forward. It’s a pivotal level for Dogecoin. After breaking past this we could advance further and let resistance develop farther up towards 0.17 and beyond.
The price action in this zone is going to be critical to watch, as the tone of how the cryptocurrency behaves for the coming weeks may very well be set here.
Along with the price rally, Dogocoin’s trading volume also hit a major uptick, which shows a high level of interest and activity in the token. The surge in trading volume was by about 96.51% within the last 24 hours, matching in pace with the increase in price.
This is a positive sign for traders, correlation between volume and price is a strong buy-in at current levels. In sync with the price fluctuations, Dogecoin’s market cap has also grown to a point, hovering around $24.68 billion, with an increase of 14.51% in the same period.
This increases its market cap even more, as it is one of the top ten cryptocurrencies by market valuation.
Dogecoin Breaks Out of Consolidation
Taking another Dogecoin chart, we see the price action on the right-hand side of the chart with a clear uptrend, as a bunch of higher highs and higher lows, especially after a big green candle that broke above a resistance layer close to $0.16.
The consolidation zone, shown in blue, was from $0.14 to $0.15 and then upwards. This could now become a support zone.
However, the Awesome Oscillator (AO) indicator, located at the bottom of the chart above the zero line, tells us that there is very strong bullish momentum currently. The red to green bars indicate a move from bearish to bullish momentum—the same as a move up on the chart.
