Bearish pressure is building up again around Dogecoin after a slight upward move caused by a renewed bullish sentiment in the general crypto market. While the ongoing volatility may have impacted DOGE significantly, key developments in its price trend paint a positive outlook for the dog-themed meme coin as the upside momentum grows.
Bullish Momentum Building For Dogecoin After Key Move
Since dropping below the $0.20 mark, Dogecoin has faced a robust bearish performance, keeping it well below this level. However, recent analysis hints at a possible floor price for DOGE following a period of substantial price fluctuations and corrections.
Delving into Dogecoin’s price action, Trader Tardigrade, a technical expert and investor, revealed a critical move in the DOGE 1-day chart, reflecting growing momentum. This move comes after multiple failed attempts since the beginning of the year.
According to the expert, Dogecoin has successfully recovered from its prior breakdown for the first time. The daily chart shows that the meme coin finally made the move after it failed to reclaim previous breakdowns 3 times, indicating its resilience.
Considering the price action, Trader Tardigrade believes that DOGE may have already reached its bottom and is gaining strength for an upside trend. In the event that Dogecoin has reached its bottom, it suggests that the current correction may have come to a conclusion, and the next price trajectory is upward.
While the expert anticipates an upward move, DOGE has formed notable resistance at the $0.17 mark. A decisive bullish break over this resistance zone would confirm the start of an upside trend for the meme coin and possibly aim for higher price levels.
In another X post, Trader Tardigrade mentioned that the Wyckoff Accumulation formation, which he previously predicted, is developing with a completed perfect test in phase C. With a perfect test, the expert is confident that Dogecoin will find the Last Point of Support (LPS), an area that signifies the low point of a pullback, in the short term.
After that, DOGE is expected to move higher toward key resistance areas in phase D, reflecting the Sign of Strength (SOS). Lastly, the upward move will encounter a pullback, and the meme coin will enter a consolidation phase, allowing it to gather bullish momentum into the next phase.
DOGE Makes A Second Bullish Divergence
It is reasonable that an upward move is on the horizon as Dogecoin has been displaying growing momentum in the past few days. Trader Tardigrade stated that the meme coin recently made a second Relative Strength Index (RSI) bullish divergence despite continued price fluctuations.
The first bullish divergence was a weak reversal, characterized by a lower low in DOGE and an equal low in RSI, as seen in the chart. Meanwhile, the second was a powerful reversal featuring a lower low in DOGE and a higher low in its RSI.
Featured image from YouTube, chart from Tradingview.com
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