Dogecoin holders will have to wait for a 36% increase for now
Since August fourth, the major memcoin Dogecoin (DOGE) has been trading in a narrow range. Let's figure out when to wait for growth
Many traders have been able to capitalize on Dogecoin's current range. However, prolonged sideways trading could delay the expected 36% rise in DOGE price towards the $0.13 resistance level.
Dogecoin remains in a sideways trend
Since August 4, the popular memcoin Dogecoin has been trading in a horizontal channel. Its upper boundary forms resistance at $0.10, while the lower boundary serves as support at $0.09.
However, the last six weeks have seen an increase in buying volume. Thus, the Chaikin Money Flow (CMF) indicator has been in an uptrend since early September and is at 0.16, signaling an inflow of liquidity into the market. This metric measures the movements of cash flows in and out of an asset. Positive values indicate that buyers are investing capital to support price appreciation.
In addition, the Parabolic Stop and Reverse (SAR) indicator points are below the token price at the time of writing. This is a signal that the uptrend is being maintained. This location of the points relative to the price is considered bullish and may encourage traders to buy or sell the asset.
However, despite the growing bullish pressure, Dogecoin has yet to break its resistance since August 23 and is now moving towards the lower boundary of the channel.
DOGE outlook: defense of support is key for bulls
DOGE's attempts to break the lower boundary of the horizontal channel increase the risk of further price decline. If the bulls fail to defend this level, the beginning of the downtrend will be confirmed. In this case, the price may fall even lower, possibly to the low of August 5 at $0.08.
However, if Dogecoin starts to rise, the bearish forecast will turn out to be wrong. In that case, the memcoin could rally 36% and reach the resistance level at $0.13.
