Momentum Test: Can DOGE Avoid a Short-Term Correction?

Dogecoin (DOGE) demonstrated a brief surge in momentum today, with its price reaching a maximum of $0.1331 after starting at $0.1289. Currently trading at $0.1322, the meme coin's market cap stands at $22.29 billion, and trading volume has increased significantly. Analysts observe bullish indicators that suggest potential price stability or an uptrend, while cautioning about the possibility of a correction.

Key Takeaways

DOGE opened the day at $0.1289 and peaked at $0.1331.
The meme coin's market cap is currently $22.29 billion, with trading volume up by nearly 70%.
A TD Sequential buy signal indicates a possible short-term trend reversal.
Key indicators such as MACD and RSI suggest bullish momentum but no clear market dominance.
Watch for price movements around $0.1332 resistance and $0.1312 support levels.

Momentum Test: Can DOGE Dodge a Near-Term Correction?

Current Dogecoin Performance

Today, Dogecoin (DOGE) started trading at the lower end of the range, at $0.1289. Following a strong bullish rally, its price climbed to a high of $0.1331. Should this momentum continue, DOGE may initiate a rally toward newer heights. Right now, DOGE is trading around the $0.1322 mark, with a market capitalization of approximately $22.29 billion. The trading volume for DOGE surged over 69.98%, reaching $878.54 million. According to CoinGlass, DOGE's market experienced a liquidation of $2.42 million within a 24-hour window.

Assessing DOGE's Trend Potential

A recent chart analysis indicated that Dogecoin has produced a TD Sequential buy signal, hinting at a possible exhaustion of selling pressure and the formation of a short-term trend reversal. Looking at the 3-day chart, the completed TD setup suggests that bearish momentum is starting to slow down.

Dogecoin's Moving Average Convergence Divergence (MACD) line sits above the signal line, indicating bullish prospects. This trend could continue to rise. Additionally, the Chaikin Money Flow (CMF) indicator for DOGE is at 0.09, reflecting mild buying pressure. While capital is entering the asset, the momentum remains weak to moderate and lacks the strength to support a solid upward trend.

DOGE chart (Source: TradingView)

If Dogecoin manages to hold above the $0.1332 resistance level, it may trigger a golden cross, enabling bulls to push the price towards recent highs above $0.1340. Conversely, should the price decline, it may test the nearby support level at approximately $0.1312. If selling pressure increases, a death cross could lead DOGE to retest below the $0.13 mark.

Moreover, the Bull Bear Power (BBP) reading at 0.00258 indicates a near-neutral sentiment, suggesting that buyers and sellers are evenly matched. Currently, there is no significant dominance from either party. The daily Relative Strength Index (RSI) for DOGE is at 54.42, indicating neutral to slightly bullish momentum, suggesting that the coin is not in an overbought or oversold condition. With a healthy consolidation phase, movement in either direction remains possible.

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