Despite the dominant bearish trend in the market, the famous meme-based cryptocurrency Dogecoin (DOGE) is making an effort to recover. This unexpected uptrend occurs even though overall market sentiment and conditions are still predominantly negative. Traders and investors are keeping a close eye on the situation as DOGE attempts to regain lost ground, trying to decipher what this possible trend reversal could mean.
Several factors could drive this recovery attempt, including market reactions to news, changes in investor sentiment, or technical indicators signaling oversold conditions. However, the question remains: can DOGE sustain all this rebound and reverse the bearish trend, or is it simply a temporary rise before further declines?
This introduction delves into the dynamics behind DOGE’s current price action and explores what investors could expect in the near future.
As of this writing, DOGE has a market capitalization of over $20 billion, a trading volume of over $715 million, and a price increase of 1.33%, trading at around $0.14297 in the last 24 hours. DOGE’s market capitalization and trading volume saw a decline of 0.73% and 43.92%, respectively.
DOGE analysis of the recovery
While DOGE price is currently trading below the 100-day simple moving average (SMA), an analysis of the price movement on the 4-hour chart shows that DOGE is attempting a recovery causing the bullish candles to fall.
Furthermore, given that the signal line of the 4-hour composite trend oscillator indicator has broken above the SMA and is moving towards the zero line, it supports the previous statement that DOGE price may rise.
On the daily chart, DOGE price is attempting a bullish move by developing a bullish candle as it trades below the daily SMA. This indicates that the price of DOGE may rise and at some point it may start to fall again.
The signal line and SMA of the composite trend oscillator indicator on the daily chart have made a crossover and are attempting to move below the zero line. This supports the above statement that at some point DOGE’s price may start to fall again.
Bullish or bearish trajectory?
If this recovery continues, DOGE price will advance towards the $0.14911 resistance level, despite DOGE’s continued pessimistic outlook. DOGE could rise higher to challenge the $0.16490 resistance level if it breaks above the $0.14911 level. Should a breakout occur above the previously indicated level, the crypto asset could turn bullish.
There is a tendency that DOGE price will start to fall towards the $0.13580 support level if fails to break above the $0.14911 level. The crypto asset will decline further to challenge the $0.12014 support level on a break below the $0.13580 level and also other levels after that.
Featured image from iStock, chart from Tradingview.com
