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Dogecoin makes a strong comeback; Will DOGE sustain the rise?

The all-time high of $0.7376 remains just 83.42% away from the latest trading value of $0.1215. The indications are carrying a strong sign for a new high to be created and tested very soon. Since the price action of Dogecoin was mostly consolidative and buyers were trapped at the same levels for almost eight months, the outlook carries the probability of shifting toward decline. Market capitalization for Dogecoin has reached the 8th spot with a value of $16,480,050,565, and analysts expect a further jump.

Dogecoin has marked a rather strong breakout with more than 100% gains in just six days. The 45% single-day gain made on October 29 has brought back some trust and faith in this cryptocurrency. The fortnight doubling of market value will add further momentum for Dogecoin if volumetric transactions sustain the markets. Will DOGE continue this uptrend? Read our DOGE predictions to know!

 

The price action for Dogecoin feels strong since the strong uptrend; DOGE managed to take over the 200 EMA curve. The corresponding effects have somewhat faded, but the price action is estimated to move towards some consolidation before the uptrend can be resumed.

Traders and holders would be re-estimating their stance towards this token. From a technical perspective, MACD is showcasing a bullish crossover much before the actual bull trend, precisely from the 100 EMA breakout. While the RSI indicator is gradually moving further beyond the overbought zones, which could soon retrace to levels between 70 and 80 for some time.

The earlier considered resistance level of $0.0970 has transformed into an immediate support level for DOGE with strong backing from technical, fundamental, and moving averages.  

On weekly charts, the gains of 94% in a week have brought Dogecoin back to the positive dominion resembling the price action during January 2022. Both RSI and MACD indicators during this phase seem positive, with $0.1104 becoming an immediate support level.

Dogecoin has already lost some value as profit booking came into existence, but a further decline in this value is highly unlikely. With support moving upwards, the outlook for Dogecoin will shift towards a positive breakout pattern for the coming weeks.

The buyers only need to maintain their holding position and avoid heavy selling, as quickly gained momentum can decline to nothing in a few days. DOGE has finally marked itself as an alive and kicking cryptocurrency, and this positive buying bias will have repercussions on other dormant-looking tokens.

Vivaan Shah: Vivaan Shah is a professional Forex and Cryptocurrency Market Analyst with a background in Finance. He has worked in several foremost publications before getting into NameCoinNews. He has been involved in the cryptocurrency for years. He loves to spend his free time in recording podcasts for crypto beginners. He also enjoys to explore cryptocurrency products.