- Dogecoin rebounded to a historically significant level on Monday.
- DOGE bulls saw short sellers hit the monthly pivot hard.
- Price action is consolidating this morning and could be set for a bullish breakout towards $ 0.19.
Dogecoin (DOGE) is slowly but surely coming out of the downtrend it has been in since November. With the holding’s historic $ 0.13 level, investors charged up and broke through the $ 0.16 resistance barrier, but have since been unable to maintain the rally. Today, the Dogecoin price is consolidating near the descending red trendline and it looks like it will rebound as markets brace for a second straight day of gains, adding to the overall crypto tailwinds. currencies.
Dogecoin is thriving on current tailwinds and is expected to hit $ 0.19 by the end of this week
The price of Dogecoin has worried investors since November with a sharp drop that now appears to be coming to an end. The bulls were able to reverse the trend and with a little help from yesterday’s happy and upbeat trading day, are now consolidating price action above the descending red trendline. This way we see bulls coming out of the downside and initiating more influx into Dogecoin from sidelined investors.
DOGE is already seeing a substantial increase in the Relative Strength Index, proof that the trend is changing. Further demand from the long side could push the price of the DOGE back above $ 0.16 today and force the bulls to face the monthly pivot for a second test at $ 0.17, a level that saw a downturn. brutal and violent reaction and fades the last time he was touched. If these supporting factors persist, expect DOGE price action to hit $ 0.19, with the 55-day simple moving average as a possible stop earlier in the rally before Friday.
DOGE / USD daily chart
Since this rally is dependent on favorable winds created by the positive recovery in global markets, the reverse – a negative decline in markets – would likely lead to a sell off. This would likely see the price action move back below the red descending trendline, essentially making the current breakout a false one. From there, the pressure would likely rise to $ 0.13, with a drop once it breaks. The monthly S1 at $ 0.12 is a supporting element, strengthening the bottom made by the bottom of the 4th “falling knife” of December 04th.