Dogecoin Price Analysis: DOGE Bulls Battle To Secure Higher Support As $0.35 Beckons
- Dogecoin price is holding at the descending channel’s middle boundary following recovery from$0.26.
- A confirmed break above the 100 SMA in the 12-hour timeframe would bolster DOGE above $0.3.
- IntoTheBlock’s IOMAP highlights immense resistance at $0.302, likely to hinder the expected breakout to $0.35.
Dogecoin dipped to $0.26 last week as Bitcoin retreated to $46,000. The meme-based cryptocurrency has also been generally trending south, mainly due to the resistance at $0.35.
A descending parallel channel on the 12-hour chart affirms the downtrend. However, support at $0.26 played a crucial role in ensuring that a reversal took place. DOGE brushed shoulders with $0.3 on Saturday but stalled.
At writing, Elon Musk’s pet cryptocurrency project is trading at $0.28 while holding at the descending channel’s middle boundary. With this support in place, bulls can comfortably focus on breaking the barrier at $0.3 and extending the leg to $0.35 in the medium term.
Dogecoin Price Could Regain Traction To $0.35
The 100 Simple Moving Average (SMA) currently limits the upside. However, a more than 12-hour close above this hurdle would cement the bulls’ presence in the market, trigger more buy orders. Another uptick past $0.3 will bring DOGE closer to $0.35.
DOGE/USD 12-Hour Chart
The Super Trend indicator on the daily chart still spots a buy signal, initially presented on August 7. This call to sell manifest as the technical index closed the day below Dogecoin price. The SuperTrend tracks the trend of an asset like a moving average.
However, utilizing the true average range (ATR) gauges market volatility. If the buy signal holds longer, Dogecoin will eventually resume the uptrend above $0.3.
DOGE/USD Daily Chart
The 100-day SMA is also in line to give Dogecoin much-needed support. Another daily close above this level is bound to increase the bulls’ chances of lifting higher. Realize that the Relative Strength Index (RSI) is no longer overbought. As long as support at the midline holds, we expect Dogecoin to keep the uptrend intact. Besides, more buy orders will be triggered as the RSI heads back to the overbought area above 70.
It is essential to mention that the IOMAP model by IntoTheBlock (ITB) cements the bears’ influence over the price by revealing the massive resistance zone between $0.299 and $0.307.
In this range, roughly 86,000 addresses had previously bought around 10.4 billion DOGE. Trading above this zone will not be a walk in the park; thus, recovery may take longer to materialize.
Dogecoin IOMAP On-Chain Metric
On the flip side, the meme-based cryptocurrency is sitting on relatively weak support areas, in turn adding credibility to the bearish notion. However, the on-chain metric brings to our attention subtle buyer congestion between $0.248 and $0.257.
Roughly 37,000 addresses are currently profiting from the approximately 2 billion DOGE purchased in the zone. In other words, this support area is not strong enough to hold Dogecoin for long and could eventually give in to a pulldown to $0.2.