As Dogecoin (DOGE) continues to go through a challenging period, investors are looking for signs of a potential price recovery. This article investigates recent price action, technical indicators, and market trends to assess DOGE’s possible future trajectory. Discover how key indicators and data point to a potential bullish recovery for this popular cryptocurrency.
Dogecoin (DOGE) has been on a downward trend since April 4, after failing to break through the $0.1016 resistance level. Recent price action has confined it to a tight range, oscillating between the $0.0700 support and the Value Area Low at $0.0750.
Amidst this price turbulence, Bitcoin (BTC)’s recent gains offer a ray of hope for DOGE. With Bitcoin surging by 3.9% within 24 hours, the increased trading volume has the potential to stimulate a DOGE price recovery.
Analyzing a 12 hour chart, the Visible Range Volume Profile reveals valuable insights. The Value Area High (VAH) and Value Area Low (VAL) are currently at $0.0940 and $0.0750, respectively. Moreover, the Point of Control (POC) at $0.0818 is approaching the resistance level at $0.0805. Notably, VAL acted as a minor resistance on May 18, holding back price developments.
To gain further clarity on DOGE’s potential next move, indicators on charts play an important role. The Relative Strength (RSI) and Chaikin Money Flow (CMF) indicators are showing mild bullish signals. The RSI has crossed the neutral 50 mark, standing at 53, indicating a growing positive momentum. Similarly, CMF is at +0.06, hinting at increasing capital inflows. However, On Balance Volume (OBV) remains stagnant, potentially holding up a significant bullish rally.
For the bullish momentum to strengthen, DOGE needs to surpass VAL, targeting the $0.0805 resistance level. Conversely, a retest of $0.0700 would provide selling pressure, with the bears eyeing the March low of $0.0632.
Data from Santiment reveals an interesting trend: the average coin age (90 days) has been steadily increasing since May 17th. This represents accumulation across the network, as fewer tokens are transferred between addresses, reducing selling pressure. In addition, a decrease in inactive circulation indicates a lack of intense sales. Together, these factors point to a potential spike in DOGE demand and a bullish recovery.
Although Dogecoin has been facing challenges lately, technical indicators and market trends point to a potential bullish recovery on the horizon, offering hope to DOGE fans and investors alike.