Dogecoin has seen multiple rallies since October 2021 but none have resulted in a higher high. Should its current bull run be rejected at the daily 50-SMA (yellow), a larger downtrend would paint a bearish narrative for the meme coin leader this week. At the time of writing, DOGE traded at $0.1578, up by 7% over the last 24 hours.
Dogecoin Daily Time Frame
Dogecoin responded to a risk-on broader market by setting up an 18% upswing from $0.1370. However, the move was yet to form a new higher high. In fact, DOGE has only been able to create one higher high over the past 4-months – A 53% spike between 12-16 January which was quickly overturned over the next few days. Hence, DOGE needed to make more headway before falling within a bullish favor.
Its first test lay the 50-SMA (yellow) and $0.160-resistance. Now, with 56% of Dogecoin holders at profit and Bitcoin due for a brief correction, it’s likely that DOGE could settle between $0.151-$0.1450 supports before advancing further. From there, a key breakout above $0.160 would call for a quick 11% ascent to $0.180, followed by an extension to $0.2150 in a highly bullish outcome.
However, bearish woes would come to light if DOGE slips below the daily 20-SMA. Any additional sell-offs would be cushioned at a demand zone between $0.120-$0.1250.
Indicators
The daily RSI was parked above 55 at press time. With the range between 45-50 now acting as support, the RSI was favored to remain under bullish control this week. However, the SuperTrend Indicator offset such readings and maintained a sell position on DOGE. A stop-loss was kept at $0.1688.
Indicators
Betting on Dogecoin this week was riskier than investing in other large-mid cap alts. Although there were a few positives, DOGE’s price was yet to form a higher high and shrug past a larger downtrend. Instead, investors should wait for DOGE to close above $0.160 before placing any long bets.