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Dogecoin (DOGE) reclaimed a vital support level with a 3% rise over the past 24 hours. This saw DOGE trading above $0.15 with massive upside, as bullish sentiment returns to the market.
With Bitcoin Halving almost here, the crypto market could be set to go into overdrive with altcoins and memecoins poised to benefit from an inflow of new capital.
This could see DOGE return to its March highs of $0.22 in the near term. Here’s a look at what its price action and chart indicators tell us.
Blockhead
Buyers Look to Repeat Bullish Move
A deep dive into DOGE’s price action on the four-hour timeframe highlighted the short term approach of intraday traders to the memecoin’s price action. Earlier in March, DOGE recovered from a price correction by reclaiming the $0.147 support level. It then experienced a bearish rejection at $0.167 before retesting the support and going on a sustained bullish run.
The same scenario is likely to play out in the short term for DOGE. Over the past five days, DOGE has rebounded at the $0.147 support, experienced a pullback at the $0.167 resistance and retested the support level.
With multiple bullish candles in a row, it signals that DOGE could achieve a 45% price pump from this range, just like it did between 22 - 28 March.
The on-chart indicators echoed the bullish sentiment with the Moving Average Convergence Divergence (MACD) registering a bullish crossover over the past 12 hours. Similarly, the Relative Strength Index (RSI) moved sharply toward the neutral 50, signifying growing buying pressure.
In the Futures market, short positions were massively rekted over the past four hours with sellers accounting for 99.1% of liquidated positions per Coinglass. This highlighted the sentimental shift toward long positions on DOGE in the short term.
DOGE Mining is Coming on Bitmain
A recent tweet by BITMAIN, the world's leading manufacturer of cryptocurrency mining servers revealed plans to expand support for DOGE mining with its Antiminer L9 release in May.
According to the tweet, Bitmain’s Antiminer L9 model will support mining operations for Dogecoin, Litecoin, and Bells (BEL). This could potentially influence DOGE’s price in the medium to long term outlook.
Trade idea:
Long DOGE at CMP ($0.152)
Profit 1 - $0.167 (9%)
Profit 2 - $0.196 (28%)
Profit 3 - $0.22 (45%)
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.
