Technical indicators suggest that Dogecoin (DOGE) could attempt to challenge a key resistance level in the short term. However, sellers were trying their very best to prevent this from happening. According to CoinMarketCap, the meme coin’s price dropped 0.22% over the past 24 hours – dragging the altcoin’s value down to $0.06187 as a result.
DOGE’s slight drop in value took place during a period wherein the meme coin market’s capitalization dropped 0.55%. Consequently, the combined capitalization for all meme coin’s was estimated to be $14.4 billion.
Daily chart for DOGE/USDT (Source: TradingView)
DOGE’s price movement throughout the past few weeks has been fairly lackluster as the meme coin consolidated within the range between $0.05835 and $0.06450 during this period. Despite this, the cryptocurrency seems to be attempting to challenge the upper limit of this consolidation channel at press time.
DOGE has, however, been able to rise above both the 9-day and 20-day EMA lines over the past 3 days, and continued to trade above these technical indicators as well. Should DOGE close today’s daily candle above the 20-day EMA line, at around $0.06187, then it may have the foundation needed to finally break free from the current sideways channel.
A daily candle close above $0.06450 will be a significant accomplishment for the meme coin, given the fact that it is also confluent with the 50-day EMA line. Subsequently, traders may identify a close above this threshold as a good buy opportunity. If this bullish scenario plays out, DOGE’s price may rise to the next barrier at $0.07195 within the following fortnight.
On the other hand, DOGE closing today’s trading session below the 20-day EMA line could invalidate the bullish thesis. In this more bearish scenario, the cryptocurrency’s price could look to retest the $0.05835 support in the following 7 days.
Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
