.png){kind=logo}
Dogecoin (DOGE), the popular meme-inspired cryptocurrency, has recently displayed signs of potential upward movement. During the day, its price fluctuated between a low of $0.1291 and a high of $0.1346. Although the closing price slightly retraced from its peak, it still concluded above the opening, signifying a bullish trend for the day. The movement aligns with an overarching sentiment of optimism in the crypto market, primarily influenced by Bitcoin's recent surge past $68,000.
Dogecoin is approaching a significant technical pattern known as the Golden Cross. This typically happens when a short-term moving average such as a 50-day EMA crosses over a long-term one like a 200-day EMA implying a possible long-term uptrend. It trades around a 100-day EMA, which acts as a key resistance level to be decisive, especially should it break this level; this could confirm bullish sentiment and initiate another upside move.
On the four-hour chart, Dogecoin's performance shows that consolidation has created a potential ground for an up-trend to build on subsequently. The digital currency has been range-bound of late, with a slight bearish sentiment observed in some of the latest candlesticks colored green. Currently, the Relative Strength Index (RSI) stands at 55.33 indicating neutrality in the market however oversold levels are yet to be reached suggesting possibilities for an increase in prices. The Moving Average Convergence Divergence (MACD) also presents a bullish signal with a histogram showing increasing bullish momentum while the MACD line is just about crossing above the signal line.
The technical structure of Dogecoin indicates a stable base forming around the $0.13 level, which has acted as both support and resistance in the past sessions. The crucial resistance to watch is $0.135. A breakout above this resistance could confirm a bullish trend reversal and pave the way for more significant gains. On the downside, support is seen at $0.128, and a breach below could pressure Dogecoin back toward lower levels, possibly around $0.12.
Dogecoin has benefited from the overall optimistic mood in the cryptocurrency market of late. Based on on-chain data, 77% of DOGE bag holders are at profit at the prevailing prices, which is indicative of strong holding sentiment among investors. Furthermore, key owners' significant concentration of Dogecoin implies support and belief in its potential as an investment.
A rising number of transactions on the network often precedes a price rally, as seen with transaction metrics. This recent increase may well be a sign that the value of Dogecoin will appreciate more since new participants whom the projects attract will want to get involved.
While analysts have divergent opinions regarding where Dogecoin is headed next, most agree that it will have a bull trend in the medium-term to long term. Some foresee lows for Doge between 0.08 and 0.05 before any major recovery begins, whereas others expect huge dip buying opportunities for long-term holdings at any retracement below these levels. On the flip side, if DOGE can break above $0.135 convincingly, then it should aim higher towards $0.15 initially as it takes a step further towards the ambitious target of $1 mark forward
