The price of Dogecoin (DOGE) has risen 7% in the past 24 hours in an attempt to regain a $50 billion market cap. During this period, trading volumes surged to $3 billion.
Key technical indicators such as the Ichimoku Kinko Hyo show strong upward momentum. If the current trend continues, DOGE could break through key resistance levels and achieve significant short-term gains.
DOGE Ichimoku Cloud shows bullish setup
The Ichimoku Cloud chart for Dogecoin shows a bullish pattern. The price broke out of the red cloud, indicating a shift in momentum as buyers have gained control, pushing the price higher.
The red cloud formed by Senkou Span A and Senkou Span B previously reflected bearish sentiment, but DOGE moving above it indicated a change in sentiment. The current green cloud ahead further supports this bullish outlook as it suggests that the upward momentum may continue.
Additionally, the blue Tenkan-sen (conversion line) has crossed above the orange Kijun-sen (baseline), further confirming the bullish trend. This crossover highlights the short-term price strength over the long-term baseline. The green Lagging Span (Chikou Span) is also above the price and the Cloud, indicating that the current bullish trend is consistent with previous price action.
For DOGE price to maintain its upward trajectory, it must remain above the Cloud and keep the momentum going. However, failure to maintain these levels could result in consolidation or a retracement back to the Cloud.
Dogecoin DMI suggests uptrend may be stronger
The Dogecoin DMI chart shows that its ADX is currently at 21.5, a sharp rise from yesterday's 11.9, indicating that the trend is strengthening. The rise in ADX indicates that the uptrend is strengthening, reflecting growing market confidence and increased buying activity.
Over the past two days, +DI (directional indicator) has surged from 15 to 34.6, indicating strong buying pressure, while -DI has fallen from 20 to 11.1, reflecting significantly weakening selling pressure. This divergence between +DI and -DI reinforces the dominance of bullish momentum in the market.
The Average Directional Index (ADX) measures trend strength on a scale from 0 to 100, with values above 25 indicating a strong trend and values below 20 indicating a weak or absent trend. DOGE’s ADX is 21.5, suggesting that the trend is about to become firmly established, especially considering the sharp rise in the +DI and the fall in the -DI.
In the short term, this setup suggests that DOGE price may continue to rise as buyers are in control. However, for this trend to sustain, the ADX must continue to rise and remain above 25 to confirm a strong uptrend.
DOGE Price Prediction: Will It Rise by 22% Soon?
The Dogecoin price EMA lines suggest that a golden cross may form soon, which is a bullish indicator where the short-term EMA crosses above the long-term EMA. This potential crossover could signal a continuation of the uptrend, allowing Dogecoin to test the $0.36 resistance level.
If this level is broken, DOGE price could target higher resistance levels at $0.387 and $0.415, representing a potential 22.7% price increase.
DOGE Price Analysis
On the other hand, if the uptrend loses steam and the market reverses, DOGE price could test its immediate support at $0.30. Failure to hold this level could result in a steeper decline with the next strong support at $0.26 coming into play.
In order for DOGE to maintain its upward trajectory, a golden crossover needs to materialize and buyers need to push the price above a key resistance level.