Can We See a Rally in Dogecoin (DOGE) Soon?
Aiswarya Gopan • 2 min read
Dogecoin (DOGE) is posting somewhat of a recovery, trying to reclaim the key $0.25 level after a weekend of highly volatile trading that saw prices breakout to the upside on Saturday only to slip lower sharply on Sunday. At the time of writing, DOGE/USD is trading at around $0.236.
The positive momentum in the wider crypto sector is supporting the recent rise in the leading memecoin’s prices. With Bitcoin comfortably holding above $43,000, the mood among crypto investors has picked up once again, increasing buying interest across the board and contributing to the spike in DOGE lately.
In addition, Dogecoin has been seeing considerable interest among its community as well as leading brands. From Axe’s promotion and launch of a limited edition Dogecan fragrance to Oscar Mayer’s auction of its special ‘Hot Doge Weiners’, companies are trying to gain traction among Dogecoin’s fans. Oscar Mayer raised $15,001 from its auction on eBay, hitting a new world record for the most expensive hot dog ever sold.
The price action is likely to continue to the upside in the coming sessions, as per popular crypto trader Smart Contracter, who expects the bearish trend to end soon and send Dogecoin’s price soaring above the $0.40 mark. According to his analysis, the popular memecoin looks set to break its downtrend and soon witness a sharp uptick which can take it as high as $0.41.
A similar bullish outlook has been forecast by Senior Cryptocurrency Investment Analyst at Token Metrics, Forrest Przybysz, who shares, “I would expect doge to grow in tandem with the rest of the rapidly growing crypto market, though it will likely have long periods of flat price action followed by violent speculative pumps like we’ve seen in the past.”
Key Levels to Watch
On the 4-hour chart of DOGE/USD, most of the moving averages are exhibiting a bullish bias. Although, the MACD and momentum indicators are signaling a bearish bias among investors as well.
Dogecoin’s price is holding just under the pivot point at $0.238 and could rise higher as long as the market sentiment continues to remain positive. Once DOGE crosses this level, buyers could reclaim the key $0.25 mark and head on higher towards $0.30, but they will have to break past resistance at $0.284 along the way.