• Dogecoin must flip the position above the SuperTrend indicator and the Parabolic SAR points to restart the uptrend.
  • Dogecoin is holding above robust support between $0.036 and $0.037, as shown by the IOMAP model.

Dogecoin went ballistic last week following the pump on Reddit and Twitter. As covered, the token soared by more than 600% to exchange hands at $0.088. Dogecoin briefly stepped into the top ten bracket, but a correction started soon after. Meanwhile, a technical indicator implies that the critical hurdle at $0.60 must come down for Dogecoin to resume the uptrend.

Dogecoin still has the potential to jumpstart the rally

Dogecoin is trading at $0.038 at the time of writing. Despite the breakdown, the 14th largest token could settle above all the applied moving averages, including the 50 Simple Moving Average, the 100 SMA, and 200 SMA. This shows that bulls have not been overpowered yet and could resume the uptrend.

The 4-hour chart shows DOGE’s potential based on the SuperTrend indicator in collaboration with the Parabolic SARpoints. To jumpstart the uptrend, Dogecoin must overcome the hurdle at $0.060. To play the bullish card properly, a 4-hour candlestick above this seller congestion needs to come into the picture.

The significant move is likely to turn the indicators bullish and perhaps end up in a new uptrend. Notably, there is a likelihood of the bullish outlook being validated by the Moving Average Convergence Divergence whereby the MACD line (blue) will cross above the signal line. This indicator tracks the momentum of an asset’s trend and signals buy and sell signals when properly applied.

DOGE/USD 4-hour chart

DOGE/USD 4-hour chart

Dogecoin must hold firmly onto this support

The IOMAP model by IntoTheBlock reveals that Dogecoin is sitting on a stable support area. The buyer congestion zone runs from $0.036 and $0.037. Here, roughly 41,000 addresses are profiting from the approximately 4.6 billion DOGE previously bought. It is improbable that Dogecoin will slice through this zone in the near term to continue with the correction.

DOGE IOMAP model

DOGE IOMAP model

Looking at the other side of the picture

Note that Dogecoin’s uptrend might come to a halt due to the IOMAP resistance at $0.043 to $0.044. Here, 524 addresses had bought about 7.2 billion DOGE. Failure to break above this area will sabotage the bullish outlook described above.

On the other hand, the support between $0.036 and $0.037 must hold to avoid the potential steep breakdown. The likely support levels include the 50 SMA, 100 SMA, and 200 SMA.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Dogecoin price provides sidelined buyers another opportunity before a 50% rally

Dogecoin price provides sidelined buyers another opportunity before a 50% rally

Dogecoin price slips back into the $0.0587 and $0.0650 barriers after the recent Bitcoin sell-off. This retracement could be a good place for a swing long, but for now, investors can expect a 12% run-up to $0.0650.

More Dogecoin news

Binance Coin price could shed more than 10% if this trend continues

Binance Coin price could shed more than 10% if this trend continues

Binance Coin price has been on a downtrend for quite some time and has intensified after the recent sell-off in Bitcoin price. Investors need to pay close attention to the BNB’s moves over the last three weeks, which revealed a bearish setup.

More Binance Coin news

Ethereum price still stands a chance to rally to $1,500 for these reasons

Ethereum price still stands a chance to rally to $1,500 for these reasons

Ethereum price failed and was rejected at the 38.2% Fibonacci retracement level. There is a significant downtick in bearish momentum amidst the recent decline. Invalidation of an uptrend potential depends on the swing low at $1,006 remaining untagged.

More Ethereum news

Cardano (ADA) Price Prediction: A sweep of the summer lows in the making

Cardano (ADA) Price Prediction: A sweep of the summer lows in the making

Cardano price congestive nature continues during the final week of Sept. Despite the rest of the market experiencing volatile moves this week, the price has been quite stagnant. ADA currently auctions at $0.44 as the bears have prompted a 4% drop in market value.

More Cardano news

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin price takes the first step to recovery but needs solid confirmation that will arrive after a flip of the $19,539 level into a support floor. After a successful flip, investors could expect a move up to an intermediate hurdle at $20,737.

Read full analysis

BTC

ETH

XRP