Dogecoin price skyrockets as DOGE breaks crucial resistance and prints buy signal
- The price of Dogecoin recovered quickly after falling sharply on June 21.
- The 100-day SMA was recovered as critical support after DOGE fell below this level a few days earlier.
- A critical buy signal from a technical indicator confirms the bullish outlook.
The price of Dogecoin took a sharp drop on June 21, imprinting a large red candle that erased any hope of reversing a period of underperformance. However, DOGE has since recovered from the severe decline, a confirmation of the bulls’ growing interest.
Dogecoin price sees little resistance to come
The price of Dogecoin has traded within an upward downtrend line since June 2. This resistance trendline trapped DOGE on a bearish outlook as the meme-based coin continued to record higher highs and lower lows on the daily chart.
While the price of Dogecoin has suffered from constant selling pressure since early June, the sharp drop was triggered when DOGE failed to keep trade above the 100-day Simple Moving Average (SMA). , which has served as a support since November.
Going below this crucial line of defense resulted in a 42% drop on June 21, marking the lower barrier of the demand zone at $ 0.162.
Now, the Dogecoin price appears to be recovering, printing its fourth consecutive green candle on the daily chart, likely fueled by positive sentiment as DOGE developers introduce a new upgrade for the network.
DOGE managed to break above the downward resistance trendline that trapped the meme for almost a month, as well as above the 38.2% Fibonacci extension level at $ 0.271.
DOGE / USDT Daily Chart
Investors should also note that the price of Dogecoin has also exceeded the 100-day SMA. However, only a daily close above this level would confirm new fuel on the upside. The momentum reversal indicator (MRI) also printed a buy signal on the June 24 candle, adding credit to the bullish thesis.
The price of Dogecoin must continue to trade above the 100 day SMA and diagonal trendline to increase the likelihood of DOGE reaching the 50% Fibonacci extension level at $ 0.305. If this next goal is met and maintained as support, the greater aspirations towards the 50-day SMA should not be nullified for the canine-themed piece.
If the Dogecoin price fails to close above the 100-day SMA and retreats from the dominant uptrend, DOGE is likely to retest the 38.2% Fibonacci retracement level before falling near the start of the demand barrier at $ 0.229, coinciding with the 23.6% Fibonacci retracement level.
If Dogecoin failed to maintain the aforementioned critical support levels, the DOGE price would likely be trapped below the falling resistance level, consolidating until a compelling bullish post emerges.