Dogecoin Price Analysis: DOGE At The Launchpad Ready To Rocket Beyond $0.3

Last Updated August 11th 2021
2 Min Read
  • Dogecoin puts a ferocious fight for gains eyeing levels above $1.
  • The transaction history on-chain metric shows that DOGE has a relatively smooth path to recovery.
  • The MACD and the RSI affirm the strong technical pictures as bulls gaze at trading above $0.3.

Dogecoin seems to have sustained the bullish narrative after slicing through the last barrier at $0.2. Several hurdles flipped into vital support areas, enhancing the bulls’ presence in the market. Note that a break above a long-term descending trend line catapulted DOGE past $0.25.

At the time of writing, Dogecoin is teetering at $0.27 while bulls look forward to breaking the seller congestion at $0.3, highlighted by the 100-day Simple Moving Average (SMA). Meanwhile, Dogecoin’s immediate downside support is provided by the buyer congestion at $0.2. It is imperative to realize that bulls are not giving up on the push for gains beyond.

Dogecoin Uptrend Seems Unstoppable To $0.3

The Moving Average Convergence Divergence (MACD) indicator adds credibility to the bullish narrative. This trend following index also calculates the momentum of Dogecoin. A buy signal that appeared after the selloff in July seems to have been sustained. In addition to that, the MACD crossed above the mean line, hinting at a firmer bullish grip. If the technical picture remains intact in the coming sessions, we expect DOGE to close the day above $0.3.

Subsequently, the Relative Strength Index (RSI) confirms the bulls’ growing dominance. As the RSI follows the trend of an asset, it measures the strength of the bulls and the bears. Continued recovery from near oversold conditions in July toward the overbought area implies that buyers have the upper hand.

Investors should be aware that an overbought RSI is not always a bullish indicator as the trend can quickly flip bearish. Depending on the strength of the bulls, some assets stay in this area (above 70) longer, especially during bullish cycles. Therefore, it is essential to use the RSI in conjunction with other technical indicators like the moving averages and the MACD.

DOGE/USD Daily Chart

 DOGE/USD Daily Chart 081121

IntoTheBlock’s IOMAP model shows that buyers have the upper hand, mainly due to robust support highlighted between $0.25 and $0.26. Roughly 72,000 addresses previously bought 5.2 billion DOGE in this range. Hence, if it remains intact, buyers will have ample time to execute the recovery mission.

Dogecoin IOMAP Model Highlights Robust Support

 Dogecoin IOMAP Model Highlights Robust Support 081121

On the upside, the absence of a massive resistance zone that could delay the uptrend indicates the smooth path to $0.3. Nonetheless, buyers will have to focus on slicing through the subtle seller congestion zone between $0.301 and $0.309. Perhaps closing the day above this range would augment the rally onto the next face to $0.4.

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