DOGE Breaks over Crucial Resistance – A Bullish Outlook

Briefly –

  • After the 21 June drastic losses, DOGE has recovered swiftly.
  • Dogecoin has reclaimed 100-d SMA as vital support after dipping beneath the level some few days ago.
  • Technical indicators show a buy signal, approving the bullish attitude.

On 21 June, Dogecoin experienced a drastic plunge that printed a massive red candlestick, canceling the hopes for underperformance reversal. However, the leading meme coin has recovered since, indicating bulls interest in the asset.

DOGE Experiences Some Resistance Ahead

Since 2nd June, Dogecoin has been trading in a topside dropping trend line. DOGE remains trapped in a bearish attitude due to this resistance line. Meanwhile, the crypto asset extends its lower lows and lower highs record on its daily chart.

Although the meme asset suffered from steady pressure from sellers since the start of June, DOGE initiated the drastic fall after failing to maintain over the 100-d SMA. A level that acted as Dogecoin’s support since last November.

Breaking beneath this vital defense line saw the coin declining by 42% on 21st June, tagging $0.162 at the lower boundary of the demand territory.

At the moment, DOGE seems to recover from its losses after printing green candles for four consecutive days. That likely came from the positivity that surrounded the Dogecoin market as the developers launched a new update.

As a result, Dogecoin managed to uptick over the descending resistance line that stuck the asset for around one month. For now, the meme asset trade above $0.271, 38.2% Fib extension.

Also, DOGE managed to rally over the 100-d SMA. However, the cryptocurrency will have to close the day trade over the level to confirm an extended uptrend. Moreover, the MRS (Momentum Reversal Indicator) indicates a buy sign over the past day, authorizing the bullish outlook.

DOGE has to maintain its price above the diagonal drift line and the 100-day SMA to increase its probability to trade at $0.302, 50% Fib extension. If the internet meme asset manages to achieve this target and maintain it as support, it will have higher chances to rally to the 50-d SMA.

Meanwhile, if the coin fails to close over the 100-d SMA, retreating its existing uptrend, it might retest the 38.2% Fib Retracement before declining to the $0.229 demand boundary.

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