- Dogecoin battles overhead pressure at $0.22 after gaining ground from $0.16.
- The transaction history model highlights robust support between $0.189 and $0.195.
Dogecoin has launched a recovery mission following the nerve-shattering downswing to $0.16. The drop from the record high of $0.75 attracted many investors to join the meme coin rally craze. Besides, tweets and mentions by Elon Musk presented Dogecoin as a worthwhile investment.
However, with the breakdown experienced since May, investors are bleeding profusely and crying to Musk for help. It remains uncertain that the billionaire’s involvement with the token will lead to another rally. Nevertheless, Dogecoin currently trades at $0.21 after lifting from $0.16.
Dogecoin recovery requires a catalyst
The meme coin’s immediate support at $0.20 must hold in the near term for bulls to work on the mission aiming toward $0.3. Note that the Relative Strength Index (RSI) affirms that buyers have the upper hand, as it leaves the oversold area. A continued movement of the RSI toward the midline will add weight to the uptrend.
DOGE/USD four-hour chart
The TD Sequential indicator presented a buy signal on DOGE’s 12-hour chart, adding credence to the optimistic outlook. The bullish formation developed as a red nine candlestick anticipating a one to four 12-hour candlesticks upswing.
If the buy signal is confirmed, Dogecoin’s uptrend may continue in the coming sessions. Realized that a break above $0.25 is also crucial to the lock-step recovery.
DOGE/USD 12-hour chart
The In/Out of the Money Around Price (IOMAP) has highlighted substantial support running from $0.189 to $0.195. Here, around 20,500 addresses previously bought roughly 8 billion DOGE. Note that this transaction model group addresses that have purchased Dogecoin in the past along with the volume. With these bands, investors identify formidable support and resistance zones. Hence, the buyer congestion in the mentioned range seems firm enough to absorb most of the selling pressure.
Dogecoin IOMAP model
On the upside, the only area of concern spans from $0.2214 to $0.2275. Here, nearly 16,000 addresses previously bundled up 4.52 billion Doge. This seller congestion zone is weak compared to the highlighted support. Hence, with a slight push, Dogecoin could gain traction toward $0.3.