Despite a bearish start to the day, bulls in Dogecoin (DOGE) successfully invalidated the trend and pushed the price to an intra-day high of $0.08847 from an intra-day low of $0.08647 in the previous 24 hours. After a solid start from bulls, Dogecoin was able to fend off bears and surge in price, shattering the $0.0882 resistance level and setting its eyes on a possible breach of the $0.09 barrier level. The bullish intervention had lasted as of press time, and the DOGE price shot up by 1.53% to $0.08815.
This price increase is good news for Dogecoin investors, as it can indicate further rise if the resistance level of $0.09 breaches, leading the market capitalization to increase by 1.58% to $11,692,200,876. Nevertheless, given that the 24-hour trading volume fell by 41.23% to $367,571,583, this price increase may not be sustainable in the long run. Therefore, more positive intervention may be necessary to break through the $0.09 level. As a result, although the recent bullish intervention is welcome news for Dogecoin investors, there is still time to conclude that this price increase is sustainable.
DOGE/USD 24-hour price chart (source: CoinMarketCap)
In the DOGE 2-hour price chart, the Keltner Channel bands bulge, with the top bar at 0.0903 and the bottom at 0.0849. The bulging of the Keltner Channel bands on the DOGE 2-hour price chart suggests that this asset is seeing significant purchasing activity, with prices sticking towards the upper band of 0.0903 and not going below it. In addition, the green candlestick is becoming more prominent, indicating that bullish momentum is still present. This development shows it is an excellent time to purchase DOGE and profit from the uptrend if the price stays within the Keltner Channel range. Additionally, the recent surge in trading volume suggests that the market is paying attention to DOGE and anticipates more significant price movement as positive momentum persists.
The fact that the Aroon up is 100.00% and the Aroon down is 14.29 indicates that the bulls have a significant presence in the market, and traders will likely continue to invest as long as this scenario remains. These readings mean that DOGE is in an excellent position for optimistic investors, which may lead to additional traders joining the market as buyers, driving prices higher. In addition, if the price of DOGE breaks out of the Keltner Channel, it will indicate additional upside potential shortly. This move might give a great buying opportunity for investors watching DOGE and further market confidence for those wishing to acquire a long-term position.
DOGE/USD 2-hour price chart (source: TradingView)
Moreover, the Ketner bands on the 24-hour time frame show a considerable divergence, with the upper band touching 0.0977 and the lower band touching 0.0756, indicating a significant trade range gap. This spread implies a high risk-reward situation, as traders may discover possible profits or losses at these levels based on their market holdings.
Traders must thus be mindful of the gap and show care when participating in transactions at these levels. In addition, to further limit risks, traders should employ a stop-loss order when taking a position in the market. For example, the price movement climbs above the middle band, signaling an uptrend, and traders should seek to open a long position with a stop-loss order at the gap’s bottom bar.
And yet, if the price movement falls below the middle band, the trader might consider entering a short position with a stop-loss order at the gap’s upper bar.
The Aroon up is 7.14%, while the Aroon down is 35.71%, indicating that the present bullish momentum is likely to be short-lived and that a trend reversal might come soon. To hedge against the danger of such a trend shift, traders should use a stop-loss order at either end of the gap, depending on their entering position.
DOGE/USD 24-hour price chart (source: TradingView)
Bulls must drive DOGE prices higher and transform resistance into support if bullish strength is to continue.
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