Dogecoin ($DOGE) remained in a narrow $0.10 channel for most of August. However, last week a breakout attempt resulted in an 8.5% rise, reaching a peak at $0.114.
Dogecoin Technical Analysis
Twitter analyst Ali Charts shared a chart showing a bullish divergence between Dogecoin’s price and the Relative Strength Indicator (RSI) on the 4-hour chart. The Tom Denmark (TD) Sequential indicator suggests a potential price rebound after a downward trend. This indicates that the current downward trend may be rounding off and could lead to upward price movement.
Support and Resistance Levels
A support level of $0.094 around the descending trendline was identified. DOGE recently tested this support level, and the strong green candlestick on the chart shows that the price has recently bounced off this support level. The resistance zone is above the current price, near $0.098 to $0.100.
DOGE Price Movement Forecasts
Dogecoin could be eyeing a comeback due to the bullish RSI divergence and the TD Sequential buy signal. Keeping an eye on the resistance level around $0.098 is important. A break above this level with increased volume could propel the price toward the psychological level of $0.1000 or higher. However, if the price breaks below the $0.0940 support level, this may lead to additional bearish pressure.
Current technical indicators suggest the potential for Dogecoin's price recovery. It is crucial to closely monitor key support and resistance levels to better understand the possible future price direction.
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