Dogecoin Price Forecast: DOGE bulls battle to level the playing field ahead of another recovery attempt

Last Updated July 23rd 2021
3 Min Read
  • Dogecoin is pivotal at $0.3 after bouncing off support at $0.25.
    • Technical levels remain drab amid the fight for a colossal recovery.
    • The Transaction history model reveals that DOGE sits on top of a robust support area.

    Dogecoin's downtrend seems unstoppable within a descending parallel channel on the four-hour chart. The massive losses incurred last week gave way to a brief recovery, with DOGE stepping above $0.4. However, the weekend session was marred by a bearish wave across the board.

    The meme coin abandoned the recovery and bowed to the overhead pressure. Several tentative support levels failed to hold the price, resulting in another visit to $0.25. The channel's lower boundary contributed to the recovery.

    Dogecoin bulls championing for another recovery

    At the time of writing, Dogecoin is teetering at $0.31. Marginally above the prevailing market value, the meme coin faces immense resistance at the descending channel's middle boundary. Bulls must focus on cracking this resistance and making a four-hour close above it to validate the uptrend.

    The Relative Strength Index (RSI) validates the weak recovery above $0.3 by lifting off the oversold region. Note that a continued movement above the midline might call more buyers into the market. An increase of the tailwind force will catapult Dogecoin toward the hurdle at $0.4, as highlighted by the Moving Average Convergence Divergence (MACD).

    DOGE/USD four-hour chart

     DOGE/USD 4-hour chart 052421

    It is essential to look at the direction of the Moving Average Convergence Divergence (MACD), which is leveling within the negative region. To sustain the uptrend, the MACD will have to close the gap to the mean line. Moreover, the uptrend will be crowned by the MACD line (blue) crossing above the signal line.

    Looking at the other side of the fence

    The In/Out of the Money Around Price (IOMAP) on-chain model by IntoTheBlock (ITB) shines a light on a robust support zone, running from $0.299 to $0.307. Here, nearly 60,000 addresses previously scooped up approximately 6.9 billion DOGE. Dogecoin bulls will have a simpler time working on the recovery mission if this support remains intact.

    Dogecoin IOMAP model

    DOGE/USD volume chart 052421

    On the upside, the minor resistance zones hint at the bulls emerging winners and pushing the price above $0.4. However, the IOMAP directs attention to the region between $0.32 and $0.33. Here, roughly 75,000 addresses previously purchased 3.7 billion DOGE. A break above this zone will bolster Dogecoin above $0.35 and perhaps trigger more buy orders for gains beyond $4.