Dogecoin has begun to show signs of recovery following a recent decline, standing out in the increasing cryptocurrency market.
Dogecoin Gains Support from Traders
In the last 24 hours, Dogecoin appreciated by 4.05%, currently trading at $0.33. This increase began with strong buying interest at the critical support level of $0.31, seeing trading volume rise by 8.5% compared to the previous day.
On-Chain Data Indicates Upward Momentum
Positive market sentiment is supported by on-chain data. According to Coinglass, the outflow of DOGE from exchanges to wallets reached $11.50 million, indicating an increase in long-term holdings among investors, which supports the ongoing buyer pressure.
Technical Analysis and Forecast
Dogecoin is forming a double bottom pattern on its daily chart, usually a precursor to significant upward movement. The Relative Strength Index (RSI) stands at 45, indicating it’s not in an oversold territory, suggesting further upward potential. It is expected that Dogecoin might maintain the $0.31 support level and potentially reach $0.41 in the upcoming days.
Considering the current data and market sentiment, Dogecoin may sustain its upward trend, but the $0.31 support level remains crucial for continued growth.
