Dogecoin Price Analysis: DOGE Rewarding Patient Investors As Price Closes In On $0.3

Last Updated October 6th 2021
2 Min Read
  • Dogecoin is once again attractive to investors, rising 10.8% to exchange hands at $0.265.
  • A spiking social mediate volume reveals a high investor risk appetite.
  • A daily close above the 20-day SMA or $0.3 would DOGE on an upward roll.

Dogecoin is back in the limelight after bouncing off the support between $0.19 and $0.2. The token gained traction above $0.25 on Tuesday, and bulls seem ready to stretch the leg further. At writing, DOGE exchanges at $0.265, but investors look forward to a break past $0.3, a move likely to catalyze the upswing to $0.4.

Dogecoin Draws Nigh To $0.3 As Conversation Around Upsurge

The discussions mentioning Dogecoin and the related products and ecosystem are gaining traction quickly. The meme-based coin was stuck in the demand zone between $0.19 and $0.22 for most of September.

However, since Friday, the bullish wave sweeping across the market is a reprieve to the bulls and a breath of fresh air to investors. Before the recovery, there were calls for DOGE’s return to July lows of $0.16, where many analysts believed it would meet many bulls.

Meanwhile, on-chain data by Santiment shows that Dogecoin is back to attracting high volumes of social media mentions. As long as this metric keeps rising, investor sentiment will keep growing. Consequently, we expect the price to keep rallying. A weekly close above $0.3 will confirm that the macro downtrend is over.

Dogecoin Social Volume

 Dogecoin Social Volume 100621

Dogecoin is trading around $0.262 at writing. The 200-day Simple Moving Average (SMA) has capped its immediate upside after bulls recently pushed the 50-day SMA into the rearview.

Realize that DOGE’s short-term technical picture is strongly bullish and emphasized by the Moving Average Convergence Divergence (MACD) indicator and the Relative Strength Index (RSI). A buy signal from the former called more buyers into the market amid speculation for gains above $0.3.

DOGE/USD Daily Chart

DOGE/USD Daily Chart 100621

Similarly, the RSI affirms the tightening bullish grip on Dogecoin. This index tracks DOGE’s trend and calculates the strength of the bulls and the bears. In addition to showing when Ripple is oversold or overbought, the RSI’s consistent uptrend emphasizes the extent of bulls’ aggressiveness.

For now, buyers must ensure to close the day above the 200-day SMA if not $0.3. This will keep investor interest on the roof while creating a strong enough tailwind to boost Dogecoin higher.

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