Dogecoin (DOGE) began the day negative before finding support at the intraday low of $0.07663. Conversely, Bulls took control of the market following this support zone and pushed DOGE to a 90-day high of $0.1026 before encountering resistance. The bull’s strength was still strong as of press time, driving DOGE to increase 26.56% to $0.09889 from its previous closing.
The change from the Twitter “blue bird” logo to the DOGE graphic generated a great deal of buzz on social media and drew greater attention to Dogecoin, resulting in increased purchasing pressure and a subsequent price jump.
The market capitalization and one-day trading volume increased by 26.74% and 844.11%, to $13,749,065,827 and $5,459,830,277, respectively. This spike reflects a significant increase in DOGE demand as more investors leap on board, pushing up its price. Yet, it remains to be seen if this spike is long-term or just a result of social media chatter.
DOGE/USD 2-Hour Technical Analysis
The Bollinger bands on the DOGE/USD 2-hour price chart are rising and broadening, indicating that volatility in the DOGE/USD pair is growing, potentially indicating a trend reversal or significant price movement in the near future. As the top bar is nearing 0.1006, the bottom bar is nearing 0.0837, indicating volatility.
Since the price action is trending above its signal line and close to the upper band, traders may consider taking profits or putting in stop-loss orders to safeguard their gains in the event of a rapid price collapse. This movement does not suggest that the trend will reverse, as it might signal that the upward trajectory will persist.
Furthermore, with a value of 0.0052, the MACD line advances above its SMA line, indicating that the bullish momentum remains strong. The bullish MACD histogram trend indicates that buying pressure is still in the market. However, traders should watch for any possible divergence between the MACD and the price action, which might indicate a trend weakening.
DOGE/USD 24-Hour Technical Analysis
The upper Bollinger band on the 24-hour DOGE price chart is at 0.0955, while the lower one is at 0.0635. The difference of 0.0320 between the upper and lower Bollinger bands suggests substantial volatility in the DOGE market, which may offer traders both opportunities and risks. The price action trend is above the upper bar, indicating that the market is overbought, implying that the price may be correct in the nearish term.
The Rate of Change (ROC) trend is positive, with a score of 29.40, indicating that bulls continue to dominate the DOGE market. This action boosts optimistic sentiment and may draw additional buyers to the market, pushing up prices in the near run.
Indicative of DOGE’s bullish strength, the MACD line has crossed above the signal line, and the histogram is forming higher bars. This movement shows that the bullish momentum is building and that the likelihood of a trend reversal is minimal. Traders should, however, be cautious and keep an eye out for any possible market corrections.
In conclusion, Dogecoin’s recent surge in price and social media buzz may indicate a long-term bullish trend, but traders should remain vigilant for possible market corrections.