DOGE has been holding steady above the 800-EMA for six days and above the 50-EMA for four days in the daily chart, which can be seen as a positive signal for possible further price increases. The volume indicator VPVR (green bar in the chart) shows that the price is at the upper end of the traded volume.
If DOGE makes it now, there is hardly any major volume that could hinder the rise to the yellow line at $0.11338 or to the 200-daily EMA. Currently, DOGE is also breaking the white downtrend line, and the 50-EMA could push the price further higher while also serving as support.
The yellow line at 0.11338 US dollars also marks the “neckline” of a W pattern that has formed at the two supports on the dark blue box and the light blue line. If this W pattern breaks through, the potential price target in the best case scenario is the resistance on the red line at 0.14 US dollars.
The 4-hour chart also shows a positive picture
DOGE could break out of its channel, with the 50 and 200 EMA helping to push the price through the 800 EMA. The RSI is at 61 points, so there is still enough room for an upward breakout. This is also supported by the MACD, whose histogram indicates a turning point from negative to positive momentum.
Despite the positive outlook, caution remains warranted as increased volatility is expected this week with news like the US PCE and GDP data. If DOGE breaks through the 800-EMA along with a positively reacting Bitcoin, it could act as support afterwards. However, in case of a negative reaction, there is a possibility that the price could sell off and fall back to the 200-EMA or even the light blue line, which should then act as support.
About the author
Bastian Keller (Bitbull) has been operating independently in the Forex market since 2015 and has been a full-time trader in the crypto market since 2018. He actively shares this expertise on various social media platforms, especially on his YouTube channel “Bitbull Trading“, with more than 60,000 subscribers. Bitbull also has the platform TradeMania was launched to make it easier for beginners to get started in crypto trading.
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