Dogecoin or Memcoin has been one of the most talked-about cryptocurrencies in 2021. After making a substantial up move in 2021, the second-half rally, or after May, has been subdued by numerous factors such as decreasing valuations. The negative trend in the overall crypto market pushed DOGE from the highs of $0.70 to the lows of $0.16. But is it the end of the negative cycle, or is there still more to come?
The answer lies in the technical analysis of the asset. An analysis of how it is trading for the last few days with respect to important indicators will help us establish its viability in the longer run. For now, the worries are over, and as soon as DOGE starts trading above the 100 DMA, it will be a huge relief for long-term buyers.
Dogecoin price is currently trading around $0.266, which is way above the historical price action. The bad part is over, but it’s not yet good news; for long-term gains, an asset must trade above certain mathematical calculations. The fall in the last two months has completely ruined the crypto market and re-assured that indeed trading in cryptocurrency is risky because of its high volatility.
As long as it respects the 200 DMA, which is slowly moving higher, investors can keep taking positions in Dogecoin without worrying about anything. The price action on June 25 has already reassured us that closing above the 100 DMA line wouldn’t be a simple feat. But it doesn’t seem like a very difficult task either.
MACD clearly establishes the strength, direction, momentum, and duration of the current trend. And we can witness the setting stage of a good upside move; the following retracement wouldn’t be any bigger than the upside move. Once the golden crossover pushes the price higher, the duration will be determined by the following green bars within the MACD curve.
Combining the broader crypto cues with key indicators, it is clear that Doge is headed up, but how long and in what time can be answered only with the closing of each day and the new bar diagram on the charts.
The Dogecoin seems to outperform all other cryptocurrencies on hourly charts, hitting a higher high with each swing. Currently, it has formed seventh green candles on hourly charts, each making a higher shadow than the previous candle. This price action ensures that Dogecoin will be heading higher towards the $0.30 levels according to our Dogecoin projections.
RSI is also trading close to the overbought zones, which clearly indicates an overbuying in short terms even with lower volumes. All of which indicates possible holding amongst the crypto investors.