Dogecoin (DOGE) has demonstrated renewed bullish momentum after a notable price dip on September 6. Following this low of $0.088, buyers stepped in, pushing the cryptocurrency’s price upward. As a result, DOGE broke above a descending channel observed on the daily chart, signalling potential gains. However, despite this solid upward movement, the token encountered resistance at around $0.1110, leading to a slight retracement.
On the bullish side, projections suggest that DOGE could reach as high as $0.128. Yet, immediate resistance appears to form around $0.115, stalling the upward movement at the $0.11 mark. The crypto’s price now oscillates above short-term moving average lines, indicating a consolidation phase that may precede another breakout attempt.
Dogecoin’s Indicators Suggest Price Surge Ahead
Recent indicators offer a clearer picture of DOGE’s standing within the digital currency market. The cryptocurrency is still on an upward trend and has been above moving averages as a trend indicator for quite some time. Moreover, the 21-day simple moving average, positioned above the 50-day SMA, has shown an upward bullish signal, supporting the current upward trend.
Adding to this bullish bias, the relative strength index trends upward, hovering near 56.12. This indicates a huge potential for more price appreciation in the future before it can reach the overbought levels. The Chaikin Money Flow index is also at 0.24, which implies strong buying pressure in favour of the bullishness in DOGE.
Dogecoin’s Price Action
As of press time, DOGE was priced at $0.1078, marking an increase of 0.96% in the past 24 hours. This uptick has contributed to a market capitalization of $15.75 billion, positioning Dogecoin as the eighth-largest cryptocurrency by market cap.
Furthermore, trading volume for the past 24 hours stands at $654.21 million, reflecting a 1.87% rise in trading activity. This surge in both price and volume underscores strong investor interest, even amid recent market fluctuations.
Key Levels to Watch
According to data from TradingView, Dogecoin faces significant resistance at the $0.1110 level. The cryptocurrency struggles to break this threshold despite the overall bullish momentum present in the market. Should DOGE succeed in surpassing this resistance, the path toward further price appreciation may open.
A potential breakout could lead the token toward the $0.12018 level, where another substantial hurdle awaits. In the event of a breach above the $0.12018 zone, DOGE might target the psychological mark of $0.1400. This level represents a key milestone for the cryptocurrency, should the momentum continue.
Conversely, if Dogecoin fails to overcome the $0.1110 resistance, a pullback toward the support level of $0.10313 could occur. A further breach below this support may lead DOGE down to $0.0935, a point where buying interest may resurface as investors look to capitalize on potential dips.
Also Read: Analyst Says Bitcoin Downtrend is Over: Can BTC Breakout?
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