Dogecoin Price Analysis: DOGE Ricochets Tremendously Despite Crypto Sluggish Price Action
- Dogecoin records double-digit gains on an hourly basis based amid recovery from $0.41.
- A daily close above $0.5 could ensure market stability as bulls gaze at $0.7.
Dogecoin recently liquidated investors and traders after rallying to highs slightly above $0.7 and dropping to $0.41. Before the Elon Musk appearance on the Saturday Night Live show, the upswing occurred, but a correction came into the picture, thwarting the chances of lifting to $1.
The meme coin retreated to $0.41 by Monday amid the widespread losses in the cryptocurrency market. Support at this level opened the door for more investors to buy in at a lower price, thus making the foundation for the ongoing recovery.
Dogecoin rebounds massively after holding key support
The buyer congestion at $0.41, as highlighted by the 50 Simple Moving Average (SMA) on the 4-hour chart, allowed bulls to change the focus upward. According to data by CoinGecko, DOGE is up over 12% in the last hour to trade at $0.51.
The 50 SMA limits the immediate upside, implying that if the hurdle is pushed into the rearview, Dogecoin will extend the bullish leg toward $0.7. Similarly, the narrative is supported by various technical indicators such as the Moving Average Convergence Divergence (MACD).
Note that the MACD tracks the asset’s trend and measures its momentum. This technical indicator is useful when identifying positions to sell the top and buy the bottom. Usually, investors are implored to buy when the MACD crosses the midline into the positive area. Moreover, the bullish outlook is reinforced by the MACD line striking above the signal line.
As for Dogecoin, the MACD has started recovering, implying a buy signal. The Relative Strength Index (RSI) hints at the bullish outlook lasting longer. As discussed, the uptrend to $0.7 will be secured by closing the day beyond the 50 SMA.
DOGE/USD four-hour chart
Looking at the other side of the picture
Overhead pressure may start to build if Dogecoin fails to close the day above the 50 SMA. On the other hand, the IOMAP on-chain model by IntoTheBlock reveals that resistance levels gradually increase in intensity, suggesting that recovery will be a challenging task.
Dogecoin IOMAP model
The most robust seller congestion zone runs from $0.556 to $0.572. Here, 62,600 addresses previously scooped up 5.05 billion DOGE. This hurdle may limit price action above $0.6, thus sabotaging the uptrend to $0.7 and $1, respectively.