Recently, the cryptocurrency market has ushered in a significant recovery, and the market value of meme coins has also risen accordingly, rising from US$94 billion to the current US$97.38 billion. Dogecoin’s performance in this recovery has been particularly eye-catching.
In the past week, the market value of Dogecoin has increased by 13% to $47.15 billion. With the arrival of the end of the year, the market generally expects that there may be a rebound, and whether Dogecoin can seize this opportunity and achieve a breakthrough has become the focus of investors.
Looking at the 4-hour chart, Dogecoin’s price action shows some bearish pressure. Despite an attempt to break through $0.4842, it failed, leaving the price below the trendline resistance. During this process, there were three bearish reversals, which added to the market’s concerns.
Meanwhile, technical indicators are also showing negative signs. A death cross has occurred between the 50 and 200 period SMAs, while a bearish cross has occurred between the 100 and 200 period SMAs. This SMA arrangement has formed a bearish signal on the 4-hour chart.
However, it is worth noting that Dogecoin found support at the critical support zone of $0.30 and the 23.60% Fibonacci level. Currently, Dogecoin is trading in a consolidation range between these two levels at a price of $0.3202. In the past 4 hours, Dogecoin formed a bullish engulfing candle and gained 2.90%. This recovery offset the 6.48% loss from the previous night.
As the intraday recovery momentum increases, Dogecoin is expected to break through the 50-SMA line. Once the breakthrough is successful, the possibility of Dogecoin closing above the long-term resistance trendline will greatly increase.
In addition, the 4-hour RSI also further supports the possibility of a breakout rebound. Between the last two bottom formations within the consolidation range, the RSI showed a bullish divergence, which provided additional impetus for Dogecoin to rise.
If Dogecoin manages to break above the 50-SMA, the next target will be the 200-SMA, which corresponds to the 61.80% Fibonacci level at $0.3913. However, if Dogecoin closes below the psychological level of $0.30, it could test the immediate support area of $0.2664.
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