Dogecoin (DOGE)Bulls Make a Comeback, Is There a Resistance Ahead?

ByGavin Cole

Mar 21, 2023

Key Insights:

  • DOGE’s bullish momentum gains traction, but short-term correction may occur.
  • Technical analysis suggests a potential for price increase with caution for risk management.
  • Traders should closely monitor resistance and support levels for trading opportunities.

After protracted negative momentum in the Dogecoin (DOGE) market, bulls have reclaimed market dominance after support was achieved at the intraday low of $0.07086. The bullish turnaround drove the price to a 24 hour high of $0.07542 before tumbling into solid resistance.

As a consequence of the bulls yielding after encountering resistance, the price retraced slightly to $0.07444, representing a 0.84% increase over the previous day’s closing price.

If bullish strength maintains its hold on the market, the $0.07542 resistance level may be broken, with the following resistance levels at $0.07650 and $0.07800. In comparison, a negative downturn may breach the $0.07086 support level, with the following support levels at $0.06950 and $0.06780.

The market capitalization and 24-hour trading volume increased by 1.17% and 7.29%, respectively, to $9,872,397,579 and $455,522,086 during the reverse. This action implies that investors are recovering faith in the market and are prepared to trade more aggressively, which might lead to more price gains in the near future.

DOGE/USD 4-Hour Technical Analysis

The stochastic RSI value of 45.22 and upward trend in the DOGE 4-hour price chart indicate that the present bullish momentum will likely continue soon, with more price increases possible. This movement indicates that buying pressure is building, and traders may want to consider taking a long position with a stop loss below the next support level to mitigate risk.

A TRIX reading of 4.69 suggests that the bullish momentum is gaining strength, and traders should keep an eye on trading volume to confirm the trend and search for new price objectives based on current resistance levels.

When the Technical rating indicator displays a buy signal on the price chart, it may be a good chance for traders to initiate a long position. Still, it is also crucial to assess any possible dangers and adopt suitable risk management methods. This increase reinforces the market’s optimistic mood and signals that the price may climb further in the immediate future.

DOGE/USD 24-Hour Technical Analysis

In contrast to the 4-hour price chart analysis, the stochastic RSI trended in the overbought zone on the 24-hour price chart with a value of 85.02 and drifting below its signal line. This move indicates that the DOGE may face a short-term negative correction before resuming its upward trend. Traders can look for buying chances around $0.06950 and $0.06780.

The TRIX trend is negative, with a value of -50.53, indicating that the present positive momentum may not be sustainable in the long run; thus, traders should consider placing stop-loss orders to control their risk. 

This level is supported by the TRIX’s southward movement, indicating that bearish pressure is building and traders should use caution when establishing new long positions.

The technical rating indicator on the 24-hour price chart reads -0.09. It signals a sell signal, indicating that the present trend will likely continue soon, and traders should consider taking gains or opening short positions. 

This move contradicts the 4-hour price chart, indicating that the bullish momentum may have some legs left. Traders should consider attentively watching the market for trend reversal signals before making trading decisions.

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