With the recent upsurge in accumulation from buyers and improving market sentiment, the Dogecoin price has witnessed a significant upswing in the daily chart. From the two-week low of $0.0581, the prices surged nearly 18% to currently trade at the $0.067 mark. However, the buyers face significant supply at the downsloping resistance trendline, which could undermine the ongoing recovery. This fascinating development even caught the attention of Elon Musk as Tesla now has a special Dogecoin page on their official website.
The Dogecoin price might experience a minor pullback before the resumption of the prior recovery. A bullish breakout from the overhead trendline could set the Doge price for a 22% upswing, potentially reaching $0.083. The 24-hour trading volume in Dogecoin coin is $193.4 million, indicating a 34% loss.
The ongoing recovery in the Dogecoin price faces a minor roadblock at a downsloping resistance trendline. Despite a 0.3% intraday gain, the daily chart showcasing long-wick rejection at this dynamic resistance indicates that bears are actively selling at this barrier. If the bearish momentum rises, the Dog-themed memecoin could tumble 5.3% to retest a local support zone of $0.63. This horizontal support could offer buyers a strong springboard to rechallenge the overhead trendline.
A potential breakout from the trendline will signal the resumption of a recovery rally and push the DOGE price to the $0.083 ceiling. The overhead supply could cause a minor coiling in Dogecoin price between the downsloping resistance trendline and $0.063 support. In case the memecoin breaks the aforementioned support, sellers would likely undermine the recent recovery and plummet the price back to $0.0582.
Analyzing the Bollinger Bands, the downswing in the upper bank of the indicator projects that the bullish momentum is not yet sufficient to trigger a directional rally. Moreover, the daily Relative Strength Index (RSI) slope close to the 50% mark projects a neutral sentiment among traders.
While the presented content reflects the personal opinion of the author and is subject to market conditions, it is crucial to conduct thorough market research before investing in cryptocurrencies. Neither the author nor the publication holds any responsibility for personal financial loss caused by investments made based on this information.
Source: Coingape
