Major cryptocurrencies saw significant relief as the bulls gained strength in the last few days. Dogecoin surged by an impressive 8% during the last 24 hour, following impressive gains. As of this writing, the coin was at $0.151. Altcoins rose north in their charts because market movers could be seen trading in green.
After a 6.7% increase, the total global cryptocurrency market capitalization stood at $2.26 Trillion. This was in line with bullish sentiments. Bitcoin traded at $47.800. This was a multimonth high and Ethereum reached $3400. It was the lowest price it had touched since January.
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Dogecoin Analysis: Four-hour Chart
Dogecoin trading was observed within an ascending channel (“white”), which is considered bullish. Dogecoin has risen to close to 26% in the last week. The meme-coin was further fueled by Elon Musk’s Tweet which spoke of how he found the idea of replacing Twitter’s logo with that of Doge’s impressive.
This comment was in line with Musk’s recent tweet which suggested that Twitter isn’t a platform that lets users exercise their freedom of speech. Dogecoin experienced a second double-digit rise in just a few hours after these tweets. The previous session volume was also green, indicating that price action was positive.
At $0.160 the overhead resistance was for the coin. The meme-coin traded close to that level last month in February. The bulls may continue pushing the coin towards the resistance. A price decline would result in Doge trading near $0.143 or $0.134 support levels.
Technical Analysis
Dogecoin is moving back and forth between the overbought territories. Meme-coin is gaining more buyers every day as bulls strengthen. Relative Strength Index, which indicates buying power, was above the 80 mark. This indicates overvalued tendencies.
The coin’s price was also seen above the 20 SMA, which indicated a bullish position. This indicated that buyers were driving price momentum.
Dogecoin’s cup and handle patterns (indicated by white) could allow it to continue its northbound trend. If the market is exceptionally bullish, it is easy to spot the cup-handle pattern. It is possible that the meme-coin will attempt to trade beyond its current resistance level of $0.160.
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MACD stands for market momentum. Dogecoin showed a possibility of further upward movement, which can be characterized as a bullish market momentum. Dogecoin might break the $0.153 price barrier, which could signal that the bulls are not yet gone.
MACD witnessed a bullish crossover on the 4-hour chart. Additionally, the indicator showed amplified green histograms indicating that bullish market momentum at time of writing.