Dogecoin is showing bullish signs on its short term chart. The coin is currently trading on the latter. Over the past week, DOGE registered 7% appreciation. The mem-coin has stabilized at the $0.06 support line. The key support level for the coin is $0.064.
For DOGE to continue on the bullish path, the demand for the coin must remain positive. Dogecoin is targeting the $0.07 level on the four-hour chart. Although buying power is still positive, there has been a slight decline in buying pressure on the short term charts.
If the buying power turns down, there is a pullback for the mem-coin. If the coin does not manage to trade above the $0.064 level for quite some time, the bulls will lose steam. Altcoins are also registering relief on their charts, with the price of bitcoin indicating an upward move.
Global cryptocurrency market cap today 1. with $997 billion.7% positive Changes in the last 24 hours.
Dogecoin Price Analysis: Four-Hour Chart
At press time, DOGE was trading at $0.069. The coin has registered mostly sideways trading, but has managed to gain gradually over the past few weeks. Buyers are currently outnumbering sellers, but if Dogecoin doesn’t move past the $0.070 mark, there could be less buying power.
This may force DOGE to revisit the $0.047 support level. If Dogecoin breaks above the $0.070 resistance mark and trades there for a sufficient amount of time, a jump to $0.094 is possible. The volume of DOGE traded has declined significantly in the previous session, indicating a decline in selling pressure which is a bullish sign.
With the steady rise in the price of the coin the demand for Dogecoin also moved upwards. In line with increased buying power, the Relative Strength Index was pictured above the halfway line.
This reading indicated positive buying strength and bullish price action, however, a minor downside was noted on the indicator. Moving Average Convergence Divergence shows the price movement. MACD did a bullish crossover and gave a green signal. These flagging bars suggested buying opportunities.
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DOGE’s price action is moving bullish, but as the coin trades for some time afterwards, this is reflected in the indicator seen on the chart above. Bollinger Bands are tied to indicate the potential for price volatility. Bollinger Bands opened slightly, however, it was mostly parallel, suggesting that the price of the coin may not be subject to huge volatility.
Directional Movement Index indicates the price trend and the strength of the same. The DMI was positive as the +DI line (blue) was above the -DI line (orange).
The Average Directional Index (ADX) climbed above the 20 mark, indicating that the current price trend on the chart was gaining momentum.
This indicates that Dogecoin may post short-term gains in the upcoming trading sessions.
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Featured image from Unsplash.com, chart from TradingView.com