Dogecoin Recovery Initiated With $0.065 Breakout; When Can You Enter?

The Dogecoin(DOGE) shows a high momentum V-shaped recovery from the $0.057 monthly support. The three days winning streak with sufficient volume indicates strong bullish momentum. Moreover, the prices have recently breached the $0.065 resistance providing an entry opportunity for interested traders.

Key points:

• The potential buyers should for the daily candle to close above $0.065.
• The daily-RSI slope re-enters the bullish territory.
• The 24-hour trading volume in the Dogecoin coin is $302.8 Million, indicating a 16.5% gain.

Source-Tradingview

The recent correction in Dogecoin price evaporated around 78.6% gains from the June-August recovery. The downfall itself registered a 35.5% loss and plunged to the $0.05716 mark. However, such a long correction indicated weak bullish momentum and lessened the possibility of price recovery.

However, the altcoin obtained sufficient support at this $0.0571 mark, and even after multiple breakdowns attempts, the buyers managed to sustain above it.

On September 22nd, the dogecoin bounced back from this support with a long bullish candle. The bullish momentum sustained and showed three consecutive green candles, registering 16.7% growth. The bull run breached a local resistance of $0.065 and currently trades at the $0.066 mark.

However, a high wick rejection in today’s candle reflects short-term traders having started booking their profits. Therefore, A daily candlestick closing above this $0.065 mark is important to confirm a bullish breakout.

Doing so will offer a higher footing for buyers to prolong this recovery. Thus, a post-retest rally may drive the prices 14% high to hit $0.075 resistance.

On a contrary note, if the sellers pull the prices below the $0.065 level, the coin holders could experience a minor consolidation. 

Technical indicator

RSI indicator: the daily-RSI slope showed an evident bullish divergence at $0.067 support, indicating growth in underlying buying momentum. Moreover, the crossover above midline(50%) reflects the improved market sentiment.

EMAs: the recent price jump has reclaimed the 20-and-50-days EMA barrier. Any possible retracement could obtain significant support from these EMA’s.

• Resistance levels- $0.075 and $0.088
• Support levels- $0.065 and $0.057