Price Analysis

Dogecoin Price Analysis: DOGE Price Soars Over 5% as Bullish Momentum Strengthens

Kelvin Munene

Over the past 24 hours, Dogecoin (DOGE) has witnessed a notable price surge of 3.73% to its current price of $0.1084. The market has taken note of this recent move as it seems like bullish momentum is building up which indicates that there might be additional gains in store for DOGE.

Key Support and Resistance Levels

To ascertain where it could go next, Dogecoin’s price action has created several crucial support and resistance levels. The price first began moving upwards from around $0.1045; this area has proved to be a strong basis for the latest increase in prices and may act as an important support level during any pullbacks.

Source: CoinMarketCap

However, on the other hand, there was some selling pressure around $0.110 which served as a resistance level for Dogecoin. Breaking through this point would open doors for more upward movements because this mark represents an important threshold that needs to be crossed by DOGE if it wants to continue rallying higher with strength. 

Lower highs formed while approaching these levels also indicate that buyers were not willing enough to bid above them.

Trading Volume and Market Cap Analysis

The trading volume of Dogecoin over the past 24 hours is about $497.11 million which represents a decrease of 2.89%. Although the prices have risen but such decline in trade volumes may suggest reduction in sell-offs or cautiousness among traders before making further decisions.

If stabilisation takes place near $0.1084 then it could mean that market participants are waiting for more clear signals before making any moves during consolidation phases.

However, Dogecoin’s market capitalization has surged by 3.74% to $15.77 billion due to the price surge and the currency’s strong standing in the market. The volume-to-market cap ratio stands at 3.07%, which suggests moderate activity in relation to the market capitalization.

Technical Indicators and Bullish Signals

Several technical aspects are lining up to suggest that the Dogecoin is ready to head higher. The cryptocurrency is trading above the 200-day exponential moving average and is struggling to hold above the 100-day exponential moving average. Levels above which trading takes place are regarded as bullish, which means that the upward movement could possibly persist.

Source: TradingView

The Chaikin Money Flow (CMF) indicator is negative at 0.13, which suggests that there are more sellers than buyers. However, if this indicator rises and goes higher than zero, it will strengthen the bullish trend view.

The Relative Strength Index (RSI) is at 44.21, which suggests that Dogecoin is not overbought or oversold. However, should DOGE surpass the 50 region, a bullish recovery is poised to continue. This anticipation would mean an increasing buying pressure which is a precedence of a bullish recovery.

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