- Summary:
- Dogecoin price had been on a steep downtrend this week, but the bulls seem to be buying the dip as the wide crypto market gathers momentum.
Dogecoin price spiked on Friday, rising by 3.5 percent to break a three-session downturn and trade at $0.129. The dog-themed meme coin signaled an impending upturn on Thursday when more than 7.3 billion DOGE tokens were bought within 24 hours. However, the trading volume had dropped by 9 percent in the previous 24 hour timeframe as of this writing, sending a caution to buyers.
Meme coins have been flashing signs of a potential bull run this week, and Dogecoin’s status as the largest meme coin by market capitalization places it at a vantage point. PEPE, BONK, FLOKI, MOG Coin and Dogwifhat were all on course to register gains on the weekly chart at press time.
Dogecoin price momentum indicators
On the 2-hour frame the 20-SMA is well above the 50-SMA, signaling that the momentum on Dogecoin price is currently in favour of further upside. Also, the Relative Strength Index (RSI) is at 54, which supports the upside view. However, a stay above the psychological mark at $0.130 will be crucial in building a sustainable near-term upside momentum.
That said, DOGE price is still down by 7.3 percent on the weekly chart, meaning that it might take some time to clear the downside-facing momentum created by the recent selling spree.
Support and resistance levels
On the 30-minute chart, look for a continuation of the upside above the $0.127 pivot mark. That could see the establishment of the first resistance at $0.130. However, if the buyers manage to clear that level, the resulting momentum could propel DOGUSD higher to test $0.132.
Conversely, a downside momentum will likely set in if the price slips below $0.127. That could establish the first support at $0.125. A breach of that mark will not only invalidate the upside narrative, but could also strengthen the downside momentum to head lower and establish the second support at the 20-SMA/50-SMA crossover at $0.124.
