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- Dogecoin unexpectedly rose more than 5% in 24 hours, surprising many investors.
- Increased trading volume and optimism contrast Dogecoin’s recent stagnation.
In a turn of events that has taken many by surprise, Dogecoin (DOGE) has witnessed a notable upswing in its market value. Over the past 24 hours, Dogecoin has seen its price surge by more than 5%, equivalent to an increase of more than $0.06189. This surge stands out in contrast to Dogecoin’s recent price trends and has generated considerable optimism within the cryptocurrency community.
Supporting this price surge is a substantial 57% spike in trading volume, amounting to an impressive $226,885,971. This surge in trading activity points toward renewed interest in Dogecoin, driving its market value higher and marking a distinct departure from its previous stagnation.
Technical Analysis Highlights
On September 27, Dogecoin executed a noteworthy move by breaking free from a descending resistance trendline that had persisted for 64 days. Nevertheless, this breakout failed to catalyze a significant upward movement, with the price only reaching a peak of $0.064 before retracing.
On October 2, a bearish engulfing candlestick pattern materialized, signifying a possible reversal in the market. This candlestick pattern suggests that it completely wiped out the gains from the previous period. Presently, Dogecoin is trading slightly above the $0.060 horizontal support level.
A closer look at the weekly Relative Strength Index (RSI) reveals a bearish sentiment prevailing in the Dogecoin market. The RSI is a momentum indicator, gauging whether an asset is overbought or oversold. Readings above 50 and an upward trend suggest a bullish market, while readings below 50 signal a bearish trend.
In the case of Dogecoin, the RSI encountered resistance at the 50 mark and is presently on a downward trajectory. This indicates a pessimistic outlook for the meme coin’s market value. However, it is worth noting that the ascending support trendline within the RSI remains intact, which preceded the recent uptick starting on August 17.
Dogecoin Bearish Signals
Referring to the six-hour timeframe, the outlook for Dogecoin assumes a bearish tone for several reasons. Firstly, Dogecoin is trading within a descending triangle pattern traditionally associated with bearish outcomes. The breakdown witnessed on October 2, marked by the emergence of a bearish engulfing candlestick pattern, shapes the slope of the resistance trendline within the triangle.
Secondly, the upward movement within the triangle resembles a corrective A-B-C pattern, as Elliott Wave theory outlines. Such patterns typically indicate the formation of a bearish trend.
If Dogecoin experiences a breakdown from the triangle, it could potentially endure a 15% decline, bringing its value down to the $0.052 range. This projection is derived by measuring the triangle’s height and extending it to the breakdown point.
A bullish trend could emerge if Dogecoin successfully breaches the resistance trendline within the descending triangle. This breakout could lead to an 8% price surge, with Dogecoin targeting the $0.067 resistance level.
