August 8, 2022


Over the past seven weeks, Dogecoin [DOGE] It has scratched itself in the direction of the nine-month trendline resistance (white, dashed) on the daily chart. This gradual recovery helped the meme coin accelerate growth on the 20 EMA as it struggled to trigger a bullish reversal on the EMA bands.

However, DOGE struggled to find a fluctuating separation from the control point (POC, red). With a set of resistance in the $0.07 region, buyers should increase buying volumes to confirm the eventual breakout. At the time of writing, DOGE is trading at $0.0689, up 2.85% over the past 24 hours.

DOGE daily chart

Source: TradingView, DOGE / USD

The buyback from the 15-month support in the $0.049 to $0.052 range helped the currency maintain a position near the point of sale level. Meanwhile, buyers struggled to break above the shackles of the EMA strips.

Also, the nine-month trendline resistance coincided with the 50 EMA to create a strong obstacle. While buying pressure appears to be building around the boundaries of these bars, a break above the $0.07 mark could force a choppy bullish move.

Over the past month, DOGE has formed a symmetrical triangle-like structure on the daily time frame. Given the previous slight upside, the coin had the potential for a breakout. A break above the pattern could test the $0.077 ceiling in the upcoming sessions.

However, a bearish intervention at the $0.07 level could help the sellers extend the recessionary phase. Any close below the $0.065 level will act as a potential catalyst to invalidate the upside move.

Logic

Source: TradingView, DOGE / USD

The RSI finally cut through the resistance level of 52 to claim a bullish advantage. The bulls still need to maintain the upside above this level to ensure continued growth on the chart.

Interestingly, the CMF and accumulation/distribution lines identified lower troughs over the 10-day period. This path confirmed the existence of an upward divergence with price action. But the alternative has yet to show a strong directional trend, as evidenced by ADX.

conclusion

DOGE is at the apex of its symmetrical triangle structure at the time of writing. The next few candlesticks can confirm the bullish slope revealed by the indicators. The objectives will remain as discussed.

However, the dog-themed coin shares a 79% 30-day correlation with the King coin. Thus, watching the movement of Bitcoin would complement these technical factors.



Source link

Leave a Reply

Your email address will not be published.