Dogecoin (DOGE) has signaled a potential upside after recently testing a key support level.
Popular memecoin DOGE, which recently hit $0.15, gave hope to its investors. During these movements, Dogecoin's trading volume increased significantly and activity in futures was observed. The MACD indicator is currently indicating an upward trend with the blue MACD line above the orange signal line. However, the narrowing gap between these lines may indicate that the trend may reverse. The RSI is currently at 57.83, which is neither overbought nor oversold for DOGE, indicating neutral market sentiment. When these factors come together, it seems that buy-side transactions may increase in Dogecoin. However, in this process, it should also be taken into account whether other metrics reverse.
Crypto analyst Altcoin Sherpa shared his analysis by determining critical levels for Dogecoin using the Fibonacci indicator. Sherpa believes Dogecoin may pull back and consolidate for a stronger upward move. He suggests that a period of consolidation could pave the way for a more robust rise.
In addition, Elon Musk, who has been silent for a long time, sharing a post about Dogecoin may trigger a big rise. The businessman's social media posts could have a significant market impact for DOGE.
According to CoinMarketCap data, Dogecoin's 24-hour trading volume has exceeded $1.2 billion. Even though it has fallen 5.26% in recent days, Dogecoin is still ranked#8on CoinMarketCap and has a market cap of $19.2 billion.
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