Over the past 24 hours, Dogecoin (DOGE) price has increased by 7% with trading volume reaching $3 billion, as the altcoin attempts to recover its $50 billion market capitalization.
Key technical indicators, such as the Ichimoku Cloud, show strong bullish momentum. If the current trend continues, DOGE could break through key resistance levels and post significant gains in the short term.
DOGE Ichimoku Cloud Chart Shows Bullish Structure
Dogecoin's Ichimoku Cloud chart reveals a distinct bullish structure. The price has surpassed the cloud (red), signaling a change in market momentum as buyers take control, pushing prices higher.
The red cloud, formed by Senkou Span A and Senkou Span B, previously reflected bearish sentiment, but DOGE's breakthrough signifies a shift in sentiment. The green cloud ahead further reinforces the bullish outlook, signaling the possibility of continued growth momentum.
DOGE/USDT 4-hour chart | Source: TradingView
Additionally, the blue Tenkan-sen (conversion line) has crossed above the orange Kijun-sen (base line), confirming the upward trend. This crossover emphasizes the short-term price strength surpassing the long-term base line. Simultaneously, the green Chikou Span (lagging line) is also above the price and the cloud, confirming the current upward trend consistent with previous price movements.
To maintain the upward momentum, the price of DOGE needs to stay above the cloud and build momentum. However, if it cannot hold these levels, the price may move sideways or drop back into the cloud.
Dogecoin's DMI index shows potential for stronger upward movement.
Dogecoin's DMI chart indicates that the ADX is currently at 21.5, significantly up from 11.9 yesterday, signaling that the trend is strengthening. The increase in ADX reflects the growing confidence of the market and increased buying activity.
The +DI (Directional Indicator) has surged from 15 to 34.6 in the past two days, indicating strong buying pressure, while -DI has sharply decreased from 20 to 11.1, reflecting a significant reduction in selling pressure. The gap between +DI and -DI further reinforces the dominance of bullish momentum in the market.
Dogecoin DMI chart | Source: TradingView
The ADX index measures the strength of the trend on a scale from 0 to 100, with values above 25 indicating a strong trend, while below 20 indicates a weak or unclear trend. The ADX of DOGE (21.5) is on track to establish a strong trend, especially as +DI rises sharply and -DI falls.
In the short term, this structure suggests that the price of DOGE is likely to continue rising as buyers control the market. However, for the trend to be sustained, the ADX needs to continue rising and exceed 25 to confirm a strong upward trend.
DOGE price prediction: Will the price increase by another 22%?
The EMA lines on the Dogecoin price chart indicate a potential upcoming golden cross – a bullish signal when the short-term EMA crosses above the long-term EMA. This crossover could be a sign that the upward trend will continue, allowing DOGE to test resistance at $0.36.
If it surpasses this level, the price of DOGE could aim for higher resistance levels at $0.387 and $0.415, corresponding to a potential increase of 22.7%.
DOGE/USDT 4-hour chart | Source: TradingView
Conversely, if the bullish trend loses momentum and the market reverses, DOGE's price may test the nearest support level at $0.30. If it cannot hold this level, the price may drop further, with strong support at $0.26.
To maintain the upward momentum, a golden cross needs to form, and buyers must push the price above important resistance levels.
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