In recent trading sessions, the price of Dogecoin has been on an upward trend, surpassing a significant resistance level. In the past 24 hours, DOGE registered a 1.2% gain and in the past week the coin was up 2%.
The technical analysis suggests the possibility of emerging bullish momentum as purchasing power attempts to recover. However, demand and accumulation indicators have not yet entered the positive zone.
To gain bullish control in subsequent sessions, DOGE must surpass a crucial resistance level. The recovery of the broader market, including Bitcoin’s rise above $27,500, may also contribute to DOGE’s upward price movement.
The upcoming trading sessions will be crucial in determining whether bulls or bears will dictate price action. However, the drop in Dogecoin’s market cap indicates the seller’s current dominance over the asset.
Dogecoin Price Analysis: One Day Chart
At the time of writing, DOGE was trading at $0.073 and has shown gradual gains since it crossed the $0.070 resistance line. However, a potential price correction could happen if it fails to break through the overhead resistance.
The immediate resistance level for DOGE is set at $0.075. Surpassing this level would likely trigger a rally towards $0.078, strengthening the bulls position.
Conversely, if DOGE fails to hold its current price level, it could drop to $0.071 and possibly fall below $0.070. The recent trading session indicated weak buying power as the amount of Dogecoin traded was in the red.
Technical analysis
Throughout May and even April, Dogecoin faced challenges in attracting positive demand. At present, purchasing power remains low despite the ongoing recovery.
The Relative Strength Index (RSI) indicates that buyers are still not confident in the asset as it is below the half line. In addition, the DOGE price has fallen below the 20-Simple Moving Average (SMA) line, indicating that sellers are driving price momentum in the market.
However, if Dogecoin manages to surpass the $0.070 price level, it will move above the 20-SMA line, indicating increased demand and possibly a reversal of the current trend.
On the one-day chart, DOGE showed declining buy signals in line with other technical indicators. The Moving Average Convergence Divergence (MACD), which indicates price momentum and trend reversal, showed falling green histograms associated with buy signals.
In addition, the Bollinger Bands, which reflect price volatility and swings, showed significant narrowing. This suggests that DOGE may experience increased price volatility and swings during the upcoming trading sessions.
Currently, DOGE is at a critical price level and the next trading sessions will determine whether the price will break out to the up or down.
Featured image from UnSplash, charts from TradingView.com
