The cryptocurrency market faces turmoil from Mt. Gox BTC liquidation. Despite this, Dogecoin (DOGE) emerges as a stable performer, showing 11% weekly gains amid market volatility. It holds strong at $0.1188, up 4.65% in the last 24 hours, unaffected by recent Bitcoin declines.
According to a recent analysis by World of Charts, Dogecoin’s price action indicates a promising bullish trend. The analyst highlighted a breakout from a prolonged downward channel, suggesting that the cryptocurrency’s value could potentially double in the coming days.
For several months, Dogecoin had been confined within a downward channel, marked by lower highs and lower lows, indicating a bearish trend. However, recent price action has shown a decisive break above the descending resistance line, a strong bullish indicator. This breakout, characterized by tall green candlesticks, suggests a surge in buying pressure.
Historically, such breakouts often precede significant price movements. The World of Charts analyst predicts a 2x increase in Dogecoin’s price, driven by the momentum generated from the breakout. The price’s decisive move above the channel’s upper boundary, followed by sustained upward movement, confirms this breakout.
Dogecoin Price Could Double
The initial breakout occurred near the $0.114 mark, rapidly pushing the price to approximately $0.119. This rapid ascent reflects strong bullish sentiment, suggesting traders are confident in Dogecoin’s potential to rise further. The analyst’s expectation of a 2x increase implies that Dogecoin could reach around $0.238 if the bullish momentum continues.
In addition, the 50-day EMA, marked at 0.1273, and the 100-day EMA, at 0.1345, both lie above the current price. The positioning indicates these EMAs function as immediate resistance levels, demonstrating potential difficulty for the Dog in breaking above these thresholds in the short term.
Moreover, the 50-day EMA is below the 100-day EMA, which further reinforces the bearish trend, as the longer-term momentum remains stronger compared to the longer-term.
The Relative Strength Index (RSI) also stands at 49.61, close to the neutral 50 mark, indicating a balanced but slightly bearish momentum. The recent upward movement in RSI from below 38.20 suggests a mild recovery or a potential reversal. However, the RSI not yet crossing above 50 implies that the buying pressure is not strong enough to indicate a significant bullish trend.
The MACD indicator shows that the MACD line is slightly above the signal line. This crossover into positive territory suggests a potential bullish signal, indicating that the momentum could be shifting in favor of buyers. Additionally, the histogram is starting to show green bars, reinforcing the possibility of bullish momentum building up.
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