Dogecoin Price Analysis: 9-day bullish altcoin prepares to rally in next 24 hours

Dogecoin price analysis

TL;DR Breakdown

  • Dogecoin price has only been able to climb 7%
  • The 200-day SMA has been a good defense for Dogecoin
  • At the time of writing, DOGE/USDT pair is trading at $0.2063

Dogecoin Price Analysis: General price overview

In the last nine days, Dogecoin price has only been able to climb 7%. Today, it ended with a Doji candlestick pattern that signifies overall uncertainty. Until it can close above the declining 50-day simple moving average, it is better to forgo any purchase decisions and watch out where it goes from here. 

Sellers have been defending the $0.21 price hurdle for at least a week now, but buyers show no indications of letting go. This means that traders are hopeful and will buy more Dogecoin as it rises in price. Hence, the possibility of closing positions during the weekend is slim across DOGE traders.

Dogecoin price movement in the last 24 hours: Three crucial support levels

If the price level of Dogecoin drops below $0.195, there are three levels at which it’s possible that it would be arrested and start to rise again. These include the lower line of an ascending parallel channel (tested today), $0.195, which was also re-tested yesterday, as well as the 200-day moving average at $0.191.

The 200-day SMA has been a good defense for Dogecoin. Should the market dip below this line, you would still have time to buy back. However, should the price of Dogecoin plummet below $0.152 (the June 22 low), there it would be down 35% from its current rate as it gets nearer to May‘s descending trendline.

On the Daily Dogecoin price analysis, DOGE/USD was trending between $0.2056 and $0.2152, with the 4.3% decrease in trading volume totaling just around $1.34 billion since our last update on December 8th of 2017. 

The total market capitalization for this altcoin is currently at approximately 26 billion USD, ranking it 8th overall among the top 10 digital currencies by market capitalization.

Dogecoin Price Analysis
Source: TradingView

Dogecoin 4-hour price analysis: Flattening moving averages

Dogecoin continues to trade sideways on the four-hour chart. Further downside rejection is possible within 24 hours; investors should prepare for another rally as a result. On the 4-hour chart, we can see that Dogecoin has been trading sideways and may continue to do so. If it trades higher or rallies, it would indicate forewarning of an impending uptrend. 

On any downtick, make sure you’re prepared to sit on the fence because these downward movements often happen without notice. Notwithstanding, the volatility happens to be high when they take place. Hence,  keep your stops tight!

The 20-day EMA is flat, while the RSI is above 45. This indicates a balance between supply and demand. The bulls will eventually win if they can push the price back up to the 50-day SMA. Once this happens, there’s a chance that prices will head back toward $0.28 or higher.

If the price of DOGE begins to turn down from its current level and plummets below $0.18, the pair could break below  $0.15. This is a crucial support zone for traders because if the bulls cannot defend it, traders will sell in panic and cause an even more significant sell-off that could result in further losses. 

At the time of writing, DOGE/USDT pair is trading at $0.2063.

Dogecoin price analysis conclusion: Where is DOGE heading to? 

Despite a high resistance, Bitcoin and most altcoins are at the base of their respective resistance levels. The chances of short-term weakness in the cryptocurrency complex are tilted higher, leaving Dogecoin’s price without much incentive to rise when it reaches its trigger price. 

Meanwhile,  Dogecoin price analysis is bullish on the daily chart as the $0.20 mark prevents further downsides. 

Besides, the market has not yet tested the immediate previous high near $0.23. Therefore, traders can anticipate DOGE/USD to begin pushing higher over time and potentially set a lower high below the $0.23 resistance.

Richard Adrian

Richard Adrian

Richard is a versatile fintech analyst with a deep understanding of blockchain domains. As much as technology fascinates him, he finds the intersection of both technology and finance mind-blowing. The firm belief that fintech will drive the future has brought him to the crossroads of Fintech discoveries and transmission of immutable data to a wider audience - Cryptopolitan.

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