DOGE’s Bullish Signs Emerge as TD Sequential Flashes ‘Buy Signal’
- Dogecoin (DOGE) breaks free from a descending triangle, flashing a ‘buy’ signal, signaling potential bullish momentum.
- DOGE faces resistance at $0.06942, but a weekly close above this level could lead to a $0.077 target.
- A falling wedge pattern hints at weakening selling pressure and a possible bullish reversal, but indicators predict correction.
The Dogecoin (DOGE) market in the last seven days has grabbed the market’s attention significantly. After months in a descending triangle pattern, it finally broke free, showcasing a potential change in trend on its weekly chart.
Analysts, enthusiasts, and traders alike keenly observe Dogecoin, as the TD Sequential indicator has flashed a ‘buy’ signal, suggesting that the momentum might be shifting in favor of the bulls.
DOGE’s 24-hour trading volume decreased by 5.59% to $206.45 million, but its market capitalization increased by 0.40% to $9.73 billion during the rally, reflecting the profit-taking by investors who took advantage of the rally to sell their holdings. Despite the drop in trading volume, the general mood remains optimistic as the ‘buy’ signal continues to pique market players’ attention and confidence.
DOGE/USD Technical Analysis
In the short term, Dogecoin’s price has increased by 0.09% in the previous 24 hours, indicating a bull rally. The hourly chart, on the other hand, provides a slightly deceptive picture, showing a breach of the close resistance level at $0.06942. As a result of this move, traders predict a test of the $0.067 support level.
Interestingly, market sentiment appears indecisive, with Dogecoin navigating through a horizontal trading range, fluctuating between $0.065 and $0.074. Moreover, with a weekly trading focus, the crucial point to watch is a weekly bar closure near $0.06858. If Dogecoin can manage a weekly close above this level, it could pave the way to reaching the $0.077 mark.
Moreover, a distinct falling wedge pattern has emerged in Dogecoin’s price chart, hinting at a potentially significant shift in market dynamics. This pattern occurred after Dogecoin recorded four consecutive lower highs and lows. The falling wedge pattern suggests that selling pressure may be weakening, and buyers could start to regain control. If this pattern continues, it could indicate a bullish reversal in Dogecoin’s price.
However, the stochastic RSI rating of 63.04 and moving below its signal line on the 24-hour price chart suggests that Dogecoin may still face some resistance in its upward movement. This trend indicates that there could be a temporary pullback or consolidation before the bullish reversal entirely takes hold. If the stochastic RSI rating remains below its signal line for an extended period, it could indicate a potential loss of momentum and a continuation of the selling pressure.
With the Chaikin Money Flow (CMF) in the negative region with a reading of -0.03, it suggests that there is currently more selling pressure than buying pressure in the market for Dogecoin. This CMF trend could further contribute to the potential resistance and consolidation in its upward movement.
However, the proximity of the CMF to the zero line indicates that the selling pressure may be weakening, and there could be a potential shift in momentum if buying pressure starts to increase.
In conclusion, Dogecoin’s recent breakout from a descending triangle pattern and the ‘buy’ signal from the TD Sequential indicator has sparked optimism. However, technical indicators suggest potential resistance and consolidation ahead.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Comments
Post a Comment