Dogecoin (DOGE) Registers 25% Pump; Buyers Targeting $0.3

DOGE has emerged as one of the best-performing cryptocurrencies over the past seven days. The memecoin has surged by over 25% over this period, despite the range-bound price action across the top cryptocurrencies.

This notable rise over the past week saw DOGE flip the $0.2 price level to support, offering a new opportunity for buyers to join the bullish pump.

Analyzing DOGE’s price action on the daily and four-hour timeframes revealed a strong bullish outlook. The Relative Strength Index (RSI) was close to the overbought zone on the daily timeframe while it remained above the neutral 50 on the four-hour timeframe.

This highlighted the dedicated buying pressure both by short-term and long-term buyers. Similarly, the capital inflows remained solid on the higher timeframe with a reading of +0.08. However, on the lower timeframe, it dipped slightly below zero.

With a double retest on the four-hour timeframe, bulls have successfully held the buying floor at $0.2. Thus, buyers can go long with a short-term target of $0.25 for 21% returns and a long-term target of $0.3 for 41% returns.

Positive Funding Rate in Futures Market

In the futures market, the funding rate was strongly positive. This highlighted the bullish sentiment among market participants.

Furthermore, the long/short ratio was firmly in favor of buyers with 71.5% long positions as against 27.5% short positions across the major timeframes.

Despite the low risk nature of the trade setup, traders should exercise caution, as a break of the $0.2 support level with a strong bearish candle would invalidate the bullish setup.

Trade idea:
Entry: $0.21 (CMP)
Target: $0.25; $0.3
Stoploss: $0.18

Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.