The Dogecoin price has been experiencing substantial volatility in the last week, first rising to $0.0928 and dipping to $0.0786 before rising again to trade to highs around $0.0936. Bulls seem very aggressive and are searching for the next escape to $1.00. However, DOGE is still trading below $0.10, and the next few days could determine the direction it takes.
Dogecoin Price Approaches Major Inflection Point
After a stunning rally, Dogecoin price is holding very close to $0.10 – a level that could determine if DOGE is going to $1 or may consolidate a little longer, as investors book early gains. The most popular meme coin holds above all the applied major moving averages, starting with the 50-day Exponential Moving Average (EMA) (in red) and forming a confluence support with the 100-day EMA (in blue) around $0.0811.
Dogecoin price also sits above the 200-day EMA (in purple) and holds the ground at $0.0847. Support is also provided by two rising trend lines: the upper accelerated one and the major trendline, as observed on the chart.
A bullish outlook is anticipated in the upcoming sessions, possibly strong enough to lift the Dogecoin price above $0.10. Investors appear to be driven by the meme coin’s fear of missing out (FOMO), which has been pushing prices to the roof.
According to the Money Flow Index (MFI), Dogecoin price has seen more funds flowing into its markets, compared to the outflow volume. The MFI is a momentum indicator like the Relative Strength Index (RSI), but it incorporates volume to measure inflow and outflow velocity. When it’s up-trending, it hints at a positive momentum which increases the chances of a price rally – the opposite is also true.
For now, investors should focus on the Dogecoin price holding above higher support, especially if resistance at $0.1 (in the lower yellow band) stays still intact. New buy orders may be entered as DOGE rebounds from support at the 200-day EMA or if push comes to shove, the confluence support at $0.0811. Otherwise, movement below the accelerated trendline may trigger a selloff to the lower trend line around $0.07.
That said, all is not lost for Dogecoin price bullish outlook now that the Moving Average Convergence Divergence (MACD) indicator dons a buy signal on the same daily chart. Notice the MACD line (in blue) holding above the signal line (in red), while sustaining an upward direction. At the same time, the green histogram above the mean line (0.00) suggests that momentum favors bulls, at least for now.
What Could Stand in The Way Of Dogecoin Price Hitting $1
As mentioned, the MFI indicator measures fund inflows and outflows. In the last three weeks, most of Dogecoin volume was positive, which to a great extent, pushed the price higher.
However, the MFI dip on Monday fell from the overbought region to 59.40 suggesting that more money is leaving Dogecoin markets suggesting a spike in profit booking among investors. Therefore, it would be prudent to prepare for the possibility of a correction ahead of another sharp move above $0.10.
DOGE Alternatives
If you’re looking for other high-potential crypto projects alongside DOGE, we’ve reviewed the top 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
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