Dogecoin Rebounds Towards $0.1 Resistance Level
Dogecoin (DOGE) is making a comeback after a brief correction from its November highs. Unlike other cryptocurrencies, DOGE is not losing gains but is instead rebounding towards the psychological resistance level at $0.1.
In the past week, DOGE has seen an 8.5% increase in price, reaching $0.082. Over the course of 30 days, it has gained a cumulative 17%, according to CoinGecko market data. The trading volume has exceeded half a billion dollars, and the market cap has grown to $11.6 billion.
DOGE Recoils From Double-Bottom Pattern
The upward trend for Dogecoin began when it hit a double-bottom pattern at $0.058. Its recovery above all three moving averages (50-day EMA, 100-day EMA, and 200-day EMA) signaled a bullish era for traders.
Movement above the double-bottom pattern’s neckline resistance attracted more traders to launch long positions in DOGE, contributing to its rise to $0.0877. With the neckline resistance successfully tested, DOGE may reach $0.1 before or during the weekend.
RSI Indicates Bullish Trend
The Relative Strength Index (RSI) at 61 indicates that buyers have the upper hand in the market. As the RSI climbs toward the overbought region above 70, the odds favor the bulls.
A potential bullish cross pattern may form if the 100-day EMA moves above the 200-day EMA. This would be the third golden cross in November, signaling a strong bullish signal for DOGE.
Resistance Levels and Price Prediction
DOGE is currently facing resistance at $0.086, but breaking this level could lead to a rise to $0.12 by the end of 2023, representing a 60% increase from its current value. The weekly chart also shows a breakout from a falling wedge pattern, indicating the potential for another breakout.
To maintain the uptrend, DOGE needs increasing volume to support the breakout. The 50-week EMA is expected to provide support at $0.755.
However, DOGE still faces challenges from the 200-week EMA at $0.0839 and the 100-week EMA at $0.864. Trading above these levels could encourage more buyers to join the uptrend and potentially start a new bullish phase above $0.1.
Hot Take: Dogecoin Rebounds Towards Resistance at $0.1
Dogecoin (DOGE) is showing signs of strength as it rebounds towards the psychological resistance level at $0.1. Despite a brief correction, DOGE has maintained its gains and continues to attract traders with its upward trend. The RSI and potential bullish cross pattern suggest that the bulls have control of the market. If DOGE can break through its current resistance levels, it has the potential to reach $0.12 by the end of 2023. However, it still faces challenges from key EMAs that could hinder its movement. Overall, DOGE’s future looks promising as it strives to surpass $0.1 and continue its upward trajectory.
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