12 March 2023 09:35, UTC
Reading time: ~4 m
- The DOGE coin price is showing bullish after the bearish momentum in the previous week.
- The DOGE coin price is currently trading in a small range on a daily time frame.
- The pair of DOGE/BTC is trading at the price level of 0.0000032 with a decrease of -0.26% in the past 24 hours.
The DOGE coin price, as per the price action, has bounced off the demand zone, after facing a strong sell-off in the previous week on an hourly time frame. The DOGE coin price is currently trading in the demand zone. The DOGE coin price is making higher high and higher low price structures on a daily time frame. As the DOGE coin price fell, it broke the important demand zone in a lower time frame.
DOGE coin price signals bullish momentum
The DOGE coin price broke the demand zone with a strong bearish candlestick pattern which resulted in the rapid fall. As of now, the DOGE coin is trading above the demand zone after forming a bullish candlestick pattern which resulted in the bounce back. The DOGE coin price is currently trading below the 50 and 100 Moving averages. Recent bearishness in the price of DOGE coin price resulted in the breakdown of the 50 and 100 MAs. Moving upwards the coin price can be seen facing strong rejection from these MAs.
At present, the DOGE coin price is trading at the lower band of the Bollinger band indicator after floating to surpass the upper band. The coin price has also gone below the 14 SMA. Volumes have increased, therefore investors should remain cautious and wait for a clear signal of bullishness from the demand zone.
The DOGE coin price is trading in a small range on a daily time frame
RSI curve is trading at the price of 22.39 as the coin bounces off the demand zone. At present, the RSI curve has fallen below the 20 SMA. The coin is forming higher low and higher high formation on a 4-hour time frame as the coin shows bullishness in the higher time frame. The DOGE coin price can be seen moving if it sustains the recent gains and if it does then the RSI curve can be seen moving even higher up supporting the trend. Once the RSI curve crosses the halfway mark of 50, the DOGE coin price can be seen moving up quickly.
MACD indicator has given a negative crossover as the coin gave a breakdown of the demand zone on a lower time frame. The blue line crossed the orange line on the downside. This has resulted in the coin price moving down strongly in a 4-hour time frame. The fall in the DOGE coin price has been strong and therefore the MACD lines were seen widening. As of now, the coin price has bounced off the demand zone, and if the same continues then the MACD line can be seen giving a positive crossover.
The ADX curve has slipped below the 25 mark as the coin price broke the demand zone. As of now, the ADX curve has turned sideways, as the DOGE coin price shows some bullishness. Therefore, the DOGE coin price can be seen halting on the lower time frame and changing the price structure. Once the coin bounces off the demand zone, the ADX curve can also be seen dipping out of the 25 mark.
Conclusion: The DOGE coin price is trading at the demand zone, as per the price action. Despite the recent bullishness shown by the DOGE coin off the demand zone, the technical parameters are still negative. If the DOGE coin price is successfully able to move in uptrend then the technical parameters can be seen turning positive or else it can fall further. Investors should wait for a clear trend and then act accordingly.
Support: $0.062 and $0.054
Resistance: $0.074 and $0.079
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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