Dogecoin is bullish, with DOGE/USD pair rising to the $0.07912 level after increasing by more than 2.18% over the last 24 hours. However, the digital asset is facing some resistance at $0.08072. Traders are expecting the token to break through this level and continue its uptrend. The price action recently created a bullish engulfing candlestick pattern on the daily chart, signaling a potential breakout.
The one-day Dogecoin price analysis, reveals a possible breakout of the resistance at $0.08072. If the digital asset is able to break this level, it will likely surge higher and test new highs near $0.08. However, if the upward momentum fades out, the digital asset will likely retrace to the support zone at $0.07518. The bulls have already increased the value of the currency by 2.81 percent over today, which is a significant victory. The moving average (MA) value is found to stand at $0.0748, just above the current price.
DOGE/USD 1-day chart: TradingView
Although market volatility seems to be increasing, there is likely more opportunity for the trend to shift in either direction. The Relative Strength Index (RSI) is also in the overbought zone, indicating that the buyers are in full control. Moreover, the moving average convergence and divergence (MACD) is also in the positive region, signaling a potential uptrend.
On the four-hour chart, the Dogecoin price is currently trading in a rising wedge pattern and is attempting to break out of it. A successful breakout from this pattern could provide the much-needed momentum to push the price higher. The price has increased over the last four hours, as indicated by the green candlesticks. Due to the fact that buyers presently dominate the market movements, the price has nearly hit the volatility indicator’s upper limit.
In conclusion, the Dogecoin Token is in a very bullish position and could easily test new highs in the near future. If it continues to rise, traders should look for potential buying opportunities at the support level of $0.07518. The trading of the digital asset is at a turning point, and a breakout from either side of the range could determine the direction of the subsequent move. The bulls must exercise caution because a bearish move could render the bullish trend worthless. The overall trend is optimistic, so investors might try to buy on dips.
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