As Dogecoin (DOGE) continues to navigate a challenging period, investors seek signs of a potential price recovery. This article delves into the recent price action, technical indicators, and market trends to assess the possibilities for DOGE’s future trajectory. Discover how key indicators and data suggest a potential bullish recovery for this popular cryptocurrency.
Dogecoin [DOGE] has been on a downward trend since 4 April, after it failed to break the $0.1016 resistance level. Its recent price action has confined it to a tight range, oscillating between the $0.0700 support and Value Area Low at $0.0750.
Amidst this price turbulence, the recent gains of Bitcoin [BTC] offer a glimmer of hope for DOGE. With Bitcoin surging by 3.9% within 24 hours, the increased trading volume could potentially stimulate a price recovery for DOGE.
Analyzing the 12-hour chart, the Visible Range Volume Profile reveals valuable insights. The Value Area High (VAH) and Value Area Low (VAL) currently stand at $0.0940 and $0.0750, respectively. Moreover, the Point of Control (POC) at $0.0818 is near the resistance level at $0.0805. Notably, the VAL acted as a minor resistance on 18 May, impeding price progression.
To gain further clarity on DOGE’s potential next move, on-chart indicators play a vital role. The Relative Strength Indicator (RSI) and Chaikin Money Flow (CMF) show mild bullish signals. The RSI has surpassed the neutral 50 mark, standing at 53, indicating growing positive momentum. Similarly, the CMF is at +0.06, hinting at increasing capital inflows. However, the On Balance Volume (OBV) remains stagnant, potentially restraining any significant bullish rally.
For bullish momentum to strengthen, DOGE must surpass the VAL, targeting the resistance level at $0.0805. Conversely, a retest of $0.0700 would exert selling pressure, with bears eyeing the March low of $0.0632.
Data from Santiment reveals an intriguing trend: the mean coin age (90-day) has steadily risen since 17 May. This suggests network-wide accumulation, as fewer tokens are transferred between addresses, reducing sell pressure. Furthermore, a decline in dormant circulation indicates a lack of intense selling. Together, these factors indicate a potential surge in demand for DOGE and a bullish recovery.
Although Dogecoin has faced challenges in recent times, technical indicators and market trends suggest a potential bullish recovery is on the horizon, offering hope to DOGE enthusiasts and investors