Dogecoin At A Vital Price Level, Is There A Chance It May Rally?

The Dogecoin price, like other tokens, has wobbled under its immediate price ceiling ever since Bitcoin lost the $25,000 level. Over the last 24 hours, DOGE fell by 1.1%, indicating sideways trading on the daily chart. In the past week, the meme coin rallied close to 8%.

The technical outlook for Dogecoin shows that the bulls and bears are fighting for dominance. This indicates that there were mixed signals on the chart. Despite mixed trading signals, most indicators have presented that the bulls are still dominating the market.

Demand was trying to make a comeback, and the meme coin registered positive accumulation on the one-day chart. The immediate trading sessions remain crucial for the coin, as they could decide if Dogecoin will exhibit a rally or depreciate on the chart and break its consolidation.

A rise in demand with a push from the buyers can help the meme-coin move above its immediate resistance mark. Dogecoin is priced 88% lower than its all-time high, secured in 2021.

Dogecoin Price Analysis: One-Day Chart

DOGE was circulating at $0.088 at the time of writing. In the past week, the coin breached the $0.080 resistance level. The level above acted as a crucial price ceiling for the coin. Immediate resistance for DOGE was at $0.090; breaching this level can make the coin rally to $0.10 and then to $0.11.

If the coin breaks above the $0.11 price mark, the next stop for the meme-coin could be above the $0.14 price level.

Conversely, local support for the meme coin was at $0.084 and then at $0.078. Increased demand can make Dogecoin rally over the upcoming trading sessions. The amount of Dogecoin traded in the last session was green, a sign of bullishness on the chart.

Technical Analysis

Despite the bulls and bears battling on the chart, demand remained positive for Dogecoin. The Relative Strength Index noted a small uptick and stood above the half-line. This indicated that buyers outnumbered sellers on the chart.

After the indicator noted a bearish divergence, it was trying to recover. On the other hand, DOGE was slightly below the 20-Simple Moving Average (SMA) line as buyers were slightly losing vigor and sellers started to drive the price momentum at press time. Only a push from buyers will help DOGE move closer to its immediate resistance line.

DOGE started to form buy signals on the one-day chart, giving another reason to corroborate that the coin could be eyeing a rally. The Moving Average Convergence Divergence indicates price momentum and trend reversals.

The indicator just started to display green histograms tied to buy signals. This could mean an entry opportunity for traders to encash profits once the meme coin ascends on its chart. The Parabolic SAR suggests the price direction; the indicator formed dotted lines above the candlesticks, which implied that Dogecoin was exhibiting a downward price direction.

Featured Image From UnSplash, Charts From TradingView.com

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