Dogecoin (Doge) ended the downtrend that started after the May peak ($0.74) with the overall market rise that started on July 21.
The coin, which started to rise with low momentum on July 21, seems to have turned an important resistance level into support this week. According to the recent long-term top and bottom prices, the Fib 0.236 retracement level (0.2967) was an important resistance for the DOGE.
Daily DOGE chart
This week this level was broken and at the same time a backtest took place. Besides, 8, 21 and 89 EMA values on the daily chart are in the ideal alignment for bullishness. According to the Fibonacci levels, DOGE buyers can target 0.3814 (Fib 0.382) – 0.45 (fib 0.5) – 0.5183 (fib 0.618) prices.
In the lower region, the short-term support area can be formed between 0.3090 – 0.2967. This level is formed by the boundaries of Fib 0.236 and the 8-day EMA.
Another detail seen on the daily chart is the price movements that have continued horizontally since August 15. This causes the stochastic RSI to turn bearish. If the sideways DOGE/USDT can close this week above the 0.296 average, buyers can find support and the stochastic RSI may turn north from the bottom bearish zone. Because the CMF indicator confirms the market dominance of the bulls with its position in the positive region and slightly upwards.
If the $0.29 support area breaks down in the lower zone, we can see DOGE/USDT slide towards the 89-day EMA at $0.25.
As a result, the average price of $ 0.295 for DOGE, whose uptrend is still intact, stands out as the most critical level. The continued positive mood in the market can also reflect on the DOGE market and start its journey towards the popular humorous coin 50 cents.
Thank you for reading! If you liked the analysis, you can show your support and get more Bitcoin and altcoin analysis published.
Disclaimer: The information in the content is not an investment advice. Author is not responsible for your profit or loss. Every investment involves risks and requires knowledge