DOGE: Why further gains are still possible
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- DOGE maintained its uptrend, although prices retraced from the July high.
- Mean coin age continued to trend upwards.
Memecoin traders have enjoyed fair winds, despite the bearish conditions of the crypto market. Dogecoin [DOGE] posted impressive returns over the past week, rallying by 20%. Other related coins, such as Shiba Inu [SHIB], enjoyed similar gains over the same period.
Realistic or not, here’s DOGE’s market cap in BTC terms
With memecoins gradually decoupling themselves from Bitcoin’s [BTC] price action, are more gains likely for DOGE?
Bulls maintain uptrend despite pullback
DOGE continued its recovery from its bearish June streak that saw it sink to a year-low of $0.053. This led it to a new July high of $0.083 on 21 July and flipped DOGE bullish on the daily timeframe after it broke the previous lower low.
While DOGE experienced a retracement at the $0.083 price level, the pullback eased off at the 23.6% Fib level ($0.076). This offered buyers a new opportunity to join the bullish ride. Bulls will be targeting the $0.083 and $0.091 price zones on this next bullish charge.
However, buyers will need to be wary of lurking bears at the current price level. A break below the 23.6% Fib support could see a deeper retracement to the 38.2% Fib level ($0.072) or the 50% Fib level ($0.068).
Despite the Relative Strength Index (RSI) easing from the overbought zone, it remained above the neutral 50 to signal the presence of significant buying pressure.
Similarly, the Moving Average Convergence Divergence (MACD) maintained its bullish crossover along with green bars above the zero level.
Investors maintained bullish conviction
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As per Santiment, DOGE’s Funding Rate maintained its positive strength. It showed demand for the asset was steady, despite the pullback. Also, DOGE’s 90d mean coin age trended upwards, indicating investors’ confidence via the continued accumulation of Dogecoin.
As market conditions continue to improve, DOGE could benefit from a strengthening of its bullish advance.