Dogecoin Price Forecast: DOGE Holds Key Support, but is This Uptrend Sustainable?
- Dogecoin recovered by more than 50% following the massive breakdown to $0.16.
- Bulls focus on holding immediate support at $0.23 ahead of the subsequent recovery phase to $0.3.
Dogecoin price embraced an impressive recovery following the vast selloff this week. The bleeding had continued under $0.2 before robust support steadied at $0.16. In the meantime, Dogecoin trades at $0.235 after holding the ground above $0.23.
Dogecoin bulls nurture the uptrend aiming for $0.3
The meme coin’s short-term technical outlook gradually flips bullish as investors speculate on the uptrend stretching to $0.3. Realize that the Moving Average Convergence Divergence (MACD) indicator recently flashed a bullish signal.
The call to buy is manifested by the MACD line (blue) crossing above the signal line and widening the divergence. Subsequently, the trend momentum indicator appears to close the gap to the zero line. Note that crossing into the positive region would validate the bulls’ presence in the market.
DOGE/USD four-hour chart
Dogecoin price recovery is also reinforced by the up-trending Relative Strength Index (RSI). The RSI has recovered the ground to brush shoulders with the overbought area following the recent oversold conditions. A break above 70 may call more investors into the market, triggering immense buy orders for the ultimate upswing to $0.3.
A comprehensive look at the In/Out of the Money Around Price (IOMAP) model by IntoTheBlock (ITB) shows that the recovery trajectory is relatively smooth. The area between $0.253 and $0.265 makes the most substantial resistance.
Here, around 20,000 addresses previously purchased roughly 566 million DOGE. A break above this zone may catapult Dogecoin above $0.3 and perhaps start the next recovery phase to $0.4.
Dogecoin IOMAP model validates the uptrend
On the flip side, Dogecoin sits on robust support running from $0.212 and $0.218. Here, approximately 30,000 addresses previously purchased 3.31 billion Dogecoin. This is a massive buyer congestion zone with the ability to block bearish attempts to revisit $0.16. In other words, bulls can comfortably work toward recovery and not worry about securing support.