Breaking down Dogecoin’s bullish trends and resistance challenges
Dogecoin breaks a key RSI level, hinting at bullish potential, but needs stronger momentum and volume to push past critical resistance zones.
- DOGE has remained in a bullish trend.
- It was trading at around $0.108 as of press time.
Dogecoin [DOGE] has recently broken a significant Relative Strength Index (RSI) level, indicating a positive trend. However, despite this bullish signal, other indicators suggest that DOGE requires more substantial momentum to consolidate gains or move higher.
Dogecoin enters critical Fibonacci levels
Currently trading at $0.108, down 1.77%, Dogecoin shows a slight bearish movement in the short term. The 50-day moving average (yellow) is $0.1023, and the 200-day moving average (blue) is $0.1371.
Trading below both moving averages suggests a bearish long-term trend for Dogecoin.
Key Fibonacci levels highlight the current price around the 0% retracement level of $0.11087, acting as immediate resistance.
The next significant resistance is at the 23.6% Fibonacci retracement level of $0.11796, while support levels are at $0.09230 (38.2% level) and $0.08084 (100% retracement).
If Dogecoin can break above the 50-day moving average and surpass the $0.11087 resistance level, it could target the 23.6% retracement level at $0.11796.
A sustained move above this level would confirm a shift in momentum, aiming for the next resistance at $0.12943 (61.8% retracement). Overall, DOGE is in a consolidation phase and could break out above current resistance levels with sufficient momentum.
Can Dogecoin garner enough trading volume?
According to CoinMarketCap data, Dogecoin’s market capitalization is around $15.7 billion. Over the past seven days, its price has grown by over 2%, the lowest among the top memecoins.
Further analysis shows that the trading volume is approximately $506 million as of this writing, with decreased activity in the last 24 hours.
While weekends typically see lower trading volumes, Dogecoin will need a significant increase in volume to break through the next Fibonacci resistance level.
Active addresses show declining activity
Another metric crucial to Dogecoin’s potential price increase is the number of daily active addresses. Despite recent attempts to rally, the daily active addresses have not reflected the same level of optimism.
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The number has slightly declined over the past three days.
Data indicates that daily active addresses were around 45,000 between September 19th and 20th. However, by September 21st, the number had decreased to approximately 43,000.
