- Dogecoin is showing slow bullish moments observed for the past 1 month.
- The coin currently looks a little oversold and chances of a big movement in the upcoming weeks look high.
Introduction:
Created by the founder as a mockery of the speculations in the crypto market, Dogecoin is considered the world’s first meme coin and has been subject to constant volatility in the market. Often referred to as Elon Musk’s favorite coin, DOGE is a popular name on Twitter as numerous celebrities have mentioned it for various reasons.
Technical analysis for the coin:
A healthy upward movement following an upward bullish trendline is visible. The coin tried breaking a crucial support of .08220 but couldn’t. The current levels appear to be safe as they are in strong support. The bullish trendline was breached but there wasn’t a healthy breakout or breakdown showing confusion among the investors. The next support is nearby at .06969 levels. The chances for the coin to go below this are less. The current market is in a slightly oversold region and thus a downside is not expected for a while. We might see a little more sideways movement for DOGE but eventually, we can see .08220 levels getting achieved.
What does the current setup suggest?
On a 1-hour time frame, we see a bearish trendline setup. Dogecoin price breached the current setup but recovered very sharply from there. The price is now too close to the trendline and seeing the volumes and the current setup, we might see a small break out for the trend.
The next resistance lies at .07794 dollars and if we see a healthy breakout, this level can be achieved easily. 50 and 100 EMA show a possible downside while RSI stays neutral. Since the next support is nearby, a little downside would not be a highly big problem. If the coin sustains the current levels or even the next support, it can be considered good levels for accumulation.
If Dogecoin price drops, then there will be sudden buying, and the price will again be recovered. This means that there are buyers in the market and this is a sign that the price won’t slump to a high extent.
Conclusion:
Current levels look stable. One should enter around .07500 levels if there is a strong confirmation. Short trades would only be possible if the price goes below .07170 as there is a huge target below that. One can expect more sideways movement in the upcoming weeks before seeing a huge move on either side.
Important technical levels-
Major support levels- .07184 followed by .06965
Major resistance levels- .08227 followed by .08668
