Key Takeaways
- Despite a recent period of sideways movement, the current sentiment surrounding Dogecoin (DOGE) is bullish.
- The coin has experienced a price increase over the last two months, indicating positive momentum in the market.
- While a positive cycle is currently in motion, the price is struggling to break out of the overhead resistance of the channel, which may lead to a potential double top formation near the 200-day EMA.
As of 4rth August,, the price of Dogecoin (DOGE) stands at $0.085, indicating a bullish sentiment in the market. However, over the past week, DOGE has been moving sideways, following a 10% surge on July 25th.
In the daily chart, DOGE has been showing a gradual decline, forming a falling channel pattern over the past 8 months. Despite this bearish pattern, there is currently a positive cycle in motion, resulting in a 33% price increase over the last two months.
Nevertheless, the DOGE price is struggling to break out of the overhead resistance of the falling channel, which raises concerns about a potential double top formation near the 200-day EMA. Such a pattern could trigger a negative cycle for Dogecoin’s price.
However, if DOGE manages to sustain above the 200-day EMA, the upward trend could push the meme coin towards the $0.10 price level. Moreover, a golden crossover between the 100-day EMA and the 50-day EMA is likely, reinforcing the positive trend.
The trading volumes for DOGE are showing a triangle pattern in the daily chart, with volume slightly rising. The breakout of this triangle pattern will play a crucial role in determining the larger timeframe trend for DOGE.
According to data from IntoTheBlock, the number of whales holding DOGE has decreased by 0.30%, while DOGE investors and retailers are showing increased interest, with growth of 3.05% and 1.01%, respectively. This suggests a strong momentum for Dogecoin.
In conclusion, a bullish breakout of the triangle pattern could propel DOGE’s price to $0.10. On the other hand, a close below $0.075 may lead to a drop to $0.70. As with any cryptocurrency, the market sentiment and external factors can influence price movements, so traders and investors should exercise caution and keep a close eye on key technical levels and market developments.