Dogecoin has jumped about 5% over the last day after bouncing off its $0.055 support at the time of writing.
The cryptocurrency currently trades at $0.0616 and has tapped resistance at the 200-p moving average on the 4-hour timeframe.
Since mid-august, dogecoin has been trading inside a descending channel and is now at its top resistance. Overall, the outlook on dogecoin seems slightly bearish from the short and long-term perspectives because of its short-term price movements and the long-term bearishness of the overall crypto market.
If the price of dogecoin breaks the 200-p moving average in the 4-hour timeframe and then closes above the $0.62 mark, a medium-term rally to the $0.72 level before a correction could be possible.
Dogecoin Price Analysis
Dogecoin appears to be consolidating around the $0.061 level on the daily timeframe and has been doing so since late August.
It has broken below the $0.6158 support it last tested in late July and is now retesting this zone.
If the bulls win against the bears, a trend upwards toward the $0.724 level as the price forms what would be a head and shoulders pattern is possible.
Conversely, if the bears push the price of dogecoin lower, a retest of the $0.0483 zone like it was in mid-June might be witnessed.
The RSI indicator on the daily timeframe shows neutral price conditions, meaning that dogecoin can either trend further upwards and confirm the head and shoulders pattern or reverse downwards to retest the $0.48 level and form a bullish wedge.
DOGE on the Hourly Timeframe
On the hourly timeframes, the price of dogecoin seems to have tested the 200p moving average and is now showing signs of bearishness.
The price of dogecoin on the hourly chart appears to be in a bearish channel and is likely to be headed back down to the support around the $0.54 zone.
It is expected that the bears will take over from here and drive the price down to the $0.54 zone before a momentary correction to the upside and then further movement downwards to the $0.049 zone.
Conversely, if the bulls manage to step in once more and help the price of DOGE close above the $0.062 zone, we may see a rally to the $0.65 support, a breakout, and then some movement upwards to the $0.07 zone to confirm the head and shoulders pattern we saw earlier on the daily timeframe.
Dogecoin On-Chain Data
Overall, DOGE has gained 5.08% over the last day at the time of writing and currently trades at $0.06123.
However, the trading volume has declined by 7.19% over the last day and currently sits at $351.3 million.
The market cap of dogecoin is also up by 5.78%, as calculated by CoinMarketCap, and is currently at $8.1 billion.
Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)