The short-term downtrend in the DOGE price made a new lower low at $0.137. The technical chart indicated strong support from this level and initiated a recovery rally. Today, a recent tweet from the billionaire Elon Musk that all Tesla merchandise can be bought with Dogecoin triggered a sudden pump in its coin price.
Key technical points:
- The daily RSI line jumps above the neutral zone
- The 24-hour trading volume in the Dogecoin coin is $2.98 billion, indicating a 45.87% loss.
In our last DOGE price analysis, the DOGEUSDT pair gave a bearish breakdown from a monthly support level around $0.16 and plunged to the $0.137 mark. The price obtained intense demand pressure from this December 4th low, which pushed the price back above the broken support and the long coming descending trendline.
The coin initiated a V-shaped price recovery which challenged the $0.193 crucial resistance. However, even though the bullish sentiment was boasted by CEO Elon musk Tweet, the price couldn’t give a daily candle closing above the $0.193 mark.
The recent recovery has engulfed the 20 and 50 EMA line, which is a good start for a new rally; however, the coin is still trading below the trend defining 100 and 200 EMA, projecting a bearish trend.
The daily Relative Strength Index (61) shows a striking pump above the neutral line(50) and 20-SMA, entering the bullish territory.
Dogecoin Could Retest $0.16 Mark
From early December of 2021, the DOGE price has been resonating in a confined range between $0.19 and $0.137. The price is currently at the doorstep of $0.193 resistance, displaying long higher price rejection candles. If the price managed to sustain below this level, the coin might drop back to the lower levels.
The intense buying in dogecoin has expanded the Blooinger band range and has curved it towards the upside. However, the price has dump below the upper band of this indicator, which could lead it near the middle line.
The average directional movement index(47) slope is rising with respect to the trending price, supporting the bullish momentum.
- Resistance levels- $0.19 and $0.225
- Support levels- $0.16 and $0.137
Transaction Activity Rising In Dogecoin Since The Beginning Of 2022
On-chain analysis indicates the transaction activity in DOGE coin is steadily growing ever since the beginning of 2020. Moreover, the chart also showed a sudden spike in this these last three days. Similar behavior can be seen observed in the number of Large transactions (whales).
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