In the past week, Dogecoin (DOGE) has shown a strong increase of 27%. However, the daily chart analysis reveals potential resistance and a likelihood of short-term correction.
DOGE Daily Chart Analysis: Resistance and Support Levels
On the daily chart, the price of Dogecoin is at $0.19216, 2.19% below the daily high of $0.20435. Despite the upward trend on the weekly chart, the daily chart suggests possible bearish dynamics as the price retreated from the upper Bollinger band at $0.19082. The Simple Moving Average 20 (SMA) at $0.15595 is a strong support level that can hold DOGE if the pullback continues.
Bollinger Bands Show Volatility
The daily chart shows DOGE experiencing high volatility, having risen above the upper Bollinger Band at $0.19082, indicating strong buying pressure. However, the quick pullback from this level suggests a challenge in maintaining the bull run.
RSI Indicates Possible Correction
The Relative Strength Index (RSI) on the daily chart stands at 71.83, past the overbought zone (70). RSI above 70 typically suggests a potential short-term bearish reversal due to profit-taking. If the RSI drops below 70, it would confirm a weakening of bullish pressure and indicate a correction phase.
Dogecoin is attracting a lot of attention, and analysts have different opinions. Analyst Ali predicts that if Dogecoin breaks its key resistance levels, it may reach a new high. However, other experts caution about potential risks from overloading investment portfolios with this cryptocurrency due to its volatility.
