Dogecoin saw a price increase last week and managed to maintain its steady uptrend. However, the last few trading sessions have seen that the uptrend is currently in contact with a key resistance level and the bullish trajectory of DOGE is blocked in the short term.
At the time of this article, DOGE is trading at $ 0.40 and has a market value of over $ 53 billion. In the past 7 days, the coin has seen a price increase of over 460 percent and maintained its 24-hour transaction volume at $ 34 billion.
4-hour Dogecoin price chart
Dogecoin’s price action has been very promising last week, and the same trend has continued over the past 24 hours. However, after reaching the $ 0.40 price range, the coin is now in contact with an extremely strong resistance near $ 0.45. Earlier in the day several trading sessions saw that the coin failed to break this resistance, and if this continues, a minor correction could take place bringing the price closer to the $ 0.34 support.
The next level of support for Dogecoin is around $ 0.26; However, in the short term, considering the current scenario of the market, such a sharp decline is not expected. For DOGE to continue its uptrend, immediate resistance must be overcome within the next 12 hours, otherwise investors can expect a slight price correction.
Technical indicators for Dogecoin are looking promising right now. However, they also show signs of a trend reversal in the short term. The RSI indicator is currently in the oversold zone, but given how the Dogecoin market has performed in the past, the RSI may soon start moving towards the neutral zone. In such a scenario, the price may see a small drop or start trading sideways.
The MACD indicator is bullish with the MACD line that managed to stay above the signal line; however, as the signal line continues to approach the MACD line, there seems to be a possibility of a reversal, pointing to the short-term bearish launch.
The Dogecoin price has seen a pretty dramatic increase over the past week, and if the coin can overcome its immediate resistance, it could continue this upward trend. However, if this breach does not occur the next day, the coin could withstand short-term losses and bring it closer to the $ 0.34 price range.