Dogecoin price looks to recapture $0.35 if DOGE bulls take out this critical level
- Dogecoin price sees renewed buying interest, as a new week kicks in.
- DOGE bulls battle 21-DMA within a falling wedge formation on the 1D chart.
- 100-DMA continues to guard the downside amid bullish RSI.
Amid the growing market’s criticism over the centralization of DOGE's supply, the canine-theme-inspired cryptocurrency is attempting to find its feet after the previous week’s sell-off to two-week lows of $0.2661.
Dogecoin price kicks off a brand-new week on a positive note, consolidating Friday’s swift rebound around the $0.29 region, as bulls return this Sunday. Markets viewed Fed Chair Jerome Powell’s Jackson Hole address as not hawkish enough, which fueled a fresh upswing in cryptos on Friday.
Meanwhile, for DOGE price, the recent dry spell of celebrity endorsements has kept buyers on the sidelines. However, with Bitcoin re-attempting the $50,000 threshold, DOGE bulls are trying their luck once again.
The seventh most widely traded coin lost 8% over the last seven days, now adding 1.50% on the day after registering two straight weekly losses.
DOGE/USD: A sustained move above 21-DMA to revive bullish interests
The meme-coin has been forming lower highs and lower lows on the daily chart ever since it peaked at $0.3552 on August 16. This price action in Dogecoin has carved a falling wedge formation, which is usually considered as a bullish continuation pattern.
DOGE bulls need to crack the falling trendline resistance at $0.3127 to yield an upside breakout from the wedge. The buyers will then keep their sight on the $0.35 round figure.
However, for any upside attempts to sustain, DOGE price has to deliver a daily closing above the upwards-loping 21-Daily Moving Average (DMA) at $0.2954, which is currently checking the buying resurgence.
The 14-day Relative Strength Index (RSI) is trading flattish while sitting just above 50.00, lending some support to DOGE bulls.
DOGE/USD: Daily chart
Any pullbacks will meet initial demand at $0.2672, where the bearish 100-DMA aligns. Note that the price hasn’t yielded a daily closing below the 100-DMA support line since August 14.
Additional downward pressure could put the falling trendline (wedge) support at $0.2590 at risk.
A sustained move below the latter is likely to open the downside towards the mildly bullish 50-DMA at $0.24.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
