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The Dogecoin price surged more than 7% in the last 24 hours to trade at $0.197 at press time.
The Dogecoin Price Testing Resistance
4-hour chart for DOGE/USDT (Source: TradingView)
In the past 48 hours, the Dogecoin price has displayed interesting action on the 4-hour chart, capturing the attention of both seasoned traders and newcomers to the cryptocurrency market. Analyzing the closing prices, DOGE has seen a progressive increase from $0.18298 to $0.19491, indicating a positive momentum within the specified period.
The Exponential Moving Averages (EMAs) provide a deeper insight into the market’s sentiment. The 9 EMA has consistently been below the closing prices, suggesting a bullish trend. Similarly, the 20 EMA has shown an uptrend, which further supports the bullish sentiment in the market.
The Moving Average Convergence Divergence (MACD) values have transitioned from negative to positive, highlighting an increase in buying pressure. The histogram, moving from a low of 0.0016 to a high of 0.0027, reinforces the bullish momentum, suggesting that the buyers are gaining control over the market.
The Relative Strength Index (RSI) has remained above the 49 mark, peaking at 63.47. This indicates that while the market is nearing overbought conditions, there is still room for upward movement before any significant reversal might be expected.
Levels to Watch
Dogecoin’s recent price action has brought it close to a critical resistance level at $0.19586. A decisive break above this level could open the door for further gains, with the next resistance levels awaiting at $0.22213 and $0.22718. These levels represent potential targets for bullish traders, suggesting areas where the upward momentum might face hurdles.
Conversely, support levels at $0.1814, $0.17417, and $0.17056 serve as safety nets for the price, ensuring that any downward pressure could be mitigated before further declines. These levels are crucial for traders considering entry or exit points for short trades, indicating where buying interest may resurface to push prices higher again.
Given the current technical setup, traders might consider entering long positions on a clear break above the $0.19586 resistance, setting their sights on the next resistance levels for potential exits. Stop-loss orders could be strategically placed just below the nearest support level to minimize potential losses. For those looking at short opportunities, a rejection at the current or subsequent resistance levels could serve as a trigger, with a close watch on the support levels for covering.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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