Dogecoin (DOGE) has been witnessing a notable recovery in recent days, and technical analysis suggests that an ascending trendline is providing significant support to this upward movement.
An ascending trendline represents a price chart that connects a series of higher lows over time. It acts as a visual guide to tracking the price movements of an asset, indicating a bullish sentiment in the market.
As of the latest data from CoinGecko, Dogecoin price stands at $0.079, experiencing a minor 24-hour slump of 0.9%. However, it has still managed an impressive seven-day rally of 7.2%, hinting at the potential for further gains.
Source: Coingecko
Understanding DOGE's Ascending Trendline
An ascending trendline is essential for traders and analysts as it helps them visualize an asset's market sentiment and potential price levels. When the asset price approaches the ascending trendline, it indicates a likely level of support, and if the price breaks above the trendline, it suggests an uptrend resumption.
With sustained buying pressure, DOGE buyers have the potential to re-challenge the last swing high at $0.083. A bullish breakout for DOGE above this resistance level would hint at the resumption of the uptrend, potentially pushing the meme-inspired cryptocurrency's market value higher by 21.7% to reach $0.095.
As of today, the market cap of Dogecoin reached $11.1 billion. Chart: TradingView.com
Positive Indicators On Dogecoin Daily Chart
Meanwhile, several indicators signal bullish momentum, as a recent price analysis notes. The Exponential Moving Average (EMA) Ribbon, a cluster of EMAs that smooth out price data, displayed a bullish crossover, further reinforcing the upward momentum.
Moreover, the Moving Average Convergence Divergence (MACD) indicator showed that the bulls have the upperhand, a sign that an upward trend may be in the pipeline.
DOGE's Money Flow Index (MFI), which measures money flow into or out of an asset, also increased. This development is favorable for buyers as it suggests that more capital is entering the DOGE market, supporting its recent price gains.
Dogecoin price action in the last week. Source: CoinMarketCap
DOGE Outlook
Dogecoin's current recovery is supported by an ascending trendline, indicating a positive market sentiment among buyers. With several bullish indicators on the daily chart, including the EMA Ribbon, MACD, and MFI, the potential for an uptrend resumption and a push toward $0.095 is plausible.
However, as with any investment, caution should be exercised, and investors must conduct their research and consider various factors before making any decisions. The crypto market can be volatile, and prices are subject to rapid changes.
(This site's content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
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Source: NewsBTC.com
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