Dogecoin has caused quite a stir in recent weeks. Memecoin rose from its support point ($0.058) to the first resistance at $0.084. The price has dropped a bit, but DOGE seems to want to give it another try. Let’s look at the graphs.
The most important price levels
We’ll start this analysis with the DOGE weekly chart. Here each candle represents 7 days, which gives us an overview of the price. Here we see a large gray area that was important in the development of the course.
As you can see on the left side of the chart, DOGE rose very quickly in 2021. The coin made a brief stop before rising further to its all-time high. This stop was the origin of this gray area, as buyers and sellers could not agree on price at this time.
What you then see is a convergent price movement, with buyers selling lower and buyers selling higher. What we usually see – also here at DOGE – is that the price then moves in one direction. It leaves a good zone where the price can find support if the price returns here.
Most prominent
Dogecoin has proven this time and time again. The coin continued to bounce out of this zone as the coin dipped into this zone. And for the first time, the currency actually seems to want to keep rising. The coin reached a higher high (not on the weekly chart, but on the daily chart).
If this is followed by a higher low – which has essentially already occurred – an uptrend is initiated. This usually continues until the price reaches a lower point again. Since the coin has broken the red line (previous high), there is not much reason to believe that DOGE will return to the gray zone.
Therefore, things look very positive for DOGE. If the coin continues to make a new higher high, the coin may even rise to the upper red line on the weekly chart. This is a price that has caused price changes before.
This can only last so long. First we have to see if DOGE can still reach a peak here.
Source: BTCDirect
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
