Dogecoin appears to have regained market buying power. The alt experienced a prolonged consolidation and barely stayed above its 20-SMA (red), but its 7th August hike provided a much-needed spark for another bull run. DOGE’s weekly gains are now at 37 percent, and they will soon surpass its monthly ROI of 38 percent. Meanwhile, a resistance zone at $0.275-$0.29 complicated matters slightly, but bulls were expected to overcome it.
Daily Dogecoin Chart
At the time of writing, Dogecoin was trading at an important resistance level of $0.275-$0.294. Surprisingly, this area served as the base trendline for DOGE’s June descending triangle, following which the alt fell 36% and reached a near 2-month low. A successful close above this zone would propel the coin to its swing high of $0.337 on June 29th, accounting for another 20-22 percent increase in value. DOGE would need to close above its weekly 20-SMA (red), which coincides with the aforementioned resistance area, for this to occur.
Bulls are on the move.
The daily RSI was on the verge of forming its second peak in the overbought zone, and failure to move above 70 would result in a double top. This did pose some short-term risks, but bulls do not need to be concerned as long as the index remains above 55-60. Furthermore, the weekly RSI was trading above the 55-point level, indicating that it was about to enter bullish territory.
This indicated that the market would rise further in the coming days. The Squeeze Momentum Indicator displayed a squeeze release along with rising green bars, indicating a buying signal. The fact that the Average Directional Index remained above 25 meant that DOGE bulls retained control of the market.
The overbought nature of the RSI suggested a minor decline, but Dogecoin was expected to trade just below $0.275-$0.294 in the coming days. A close above this range could be the catalyst for another 22% increase, propelling DOGE to its next target of $0.337.