Dogecoin has seen its price surge during the past week and was been able to maintain a steady uptrend. However, the past few trading sessions have demonstrated that the unrestricted uptrend is now in contact with a key resistance level and in the short term, DOGE may see its bullish trajectory hindered.
At press time, DOGE was trading at $0.40 and had a market capitalization of over $53 billion. In the past 7-days, the coin has seen a price hike amounting to over 460 percent and maintained a 24-hour trading volume of $34 billion.
Dogecoin 4-hour chart
Source: DOGE/USD, TradingView
Dogecoin’s price action has been quite promising over the past week and the same trend has continued in the past 24-hours. However, after having hit the $0.40 price range, the coin is now in contact with extremely strong resistance around $0.45. A few trading sessions earlier in the day saw the coin failing to breach this resistance and if this continues, a minor correction may take place pushing the price closer to the $0.34 support.
The next level of support for Dogecoin is around $0.26; however, in the short term, such a drastic dip isn’t likely given the current scenario of the market. In order for DOGE to continue on its uptrend, immediate resistance needs to be overcome in the coming 12 hours, or else traders can expect a slight price correction.
Rationale
Technical indicators for Dogecoin both look promising at the moment. However, they are also exhibiting signs of a trend reversal in the short term. RSI indicator is currently in the oversold zone, but given how Dogecoin’s market has performed in the past, RSI may soon begin heading towards the neutral zone. In such a scenario the price may see a minor dip or begin trading sideways.
MACD indicator underwent a bullish crossover with MACD line managing to stay above the signal line; however, a reversal seems likely as the signal line continues to inch closer to the MACD line – indicating short-term bearishness creeping into the market.
Conclusion
Dogecoin’s price has seen a rather dramatic rise in the past week and the coin may continue on this uptrend if it is able to overcome its immediate resistance. However, if this breach doesn’t materialize in the coming day’s time, the coin may endure short-term losses taking it closer to the $0.34 price range.
