The price of Dogecoin (DOGE) has risen 7% in the last 24 hours in an attempt to regain its $50 billion market cap. During that time, trading volume soared to $3 billion.
Key technical indicators such as the Ichimoku Index show strong upward momentum. If the current trend continues, DOGE could break through key resistance levels and achieve a sharp short-term gain.
The Ichimoku cloud chart for Dogecoin shows a bullish pattern. The price breaking through the red cloud indicates a shift in momentum as buyers have taken control, driving prices higher.
The red cloud formed by Senkou Span A and Senkou Span B previously reflected bearish sentiment, but DOGE moving above it indicates a change in sentiment. The current green clouds ahead further support this bullish outlook, as it suggests that upward momentum may continue.
In addition, the blue Tenkan-sen (transition line) has crossed the orange Kijun-sen (baseline), further confirming the bullish trend. This crossover highlights the short-term price strength exceeding the long-term baseline. The green lag Span (Chikou Span) is also located above the price and cloud, indicating that the current bullish trend is in line with previous price action.
For DOGE prices to maintain their upward trajectory, they must stay above the clouds and keep the momentum going. However, failure to maintain these levels could lead to consolidation or retracement to clouds.
The Dogecoin DMI chart shows that its ADX is currently at 21.5, up sharply from yesterday's 11.9, indicating that the trend is strengthening. The rise in ADX indicates that the uptrend is gaining momentum, reflecting growing confidence and increased buying activity.
Over the past two days, +DI (direction indicator) has surged from 15 to 34.6, indicating strong buying pressure, while -DI has fallen from 20 to 11.1, reflecting a significant weakening of selling pressure. This divergence between +DI and -DI reinforces the dominance of bullish momentum in the market.
The Average Direction Index (ADX) measures trend strength on a scale from 0 to 100, with a value above 25 indicating a strong trend and a value below 20 indicating a weak or missing trend. DOGE's ADX is 21.5, indicating that the trend is about to be firmly established, especially given the sharp rise in +DI and the decline in -DI.
In the short term, this setup suggests that DOGE prices may continue to rise because buyers are in control. However, to sustain this trend, ADX would have to continue to rise and stay above 25 to confirm a strong uptrend.
The Dogecoin price EMA line indicates that a golden cross may soon form, which is a bullish indicator where the short-term EMA exceeds the long-term EMA. This potential crossover could signal a continuation of the uptrend, allowing Dogecoin to test resistance at $0.36.
If broken above this level, the DOGE price could target higher resistance levels of $0.387 and $0.415, representing a potential 22.7% price increase.
On the other hand, if the uptrend runs out of steam and the market reverses, the DOGE price could test its immediate support at $0.30. Failure to hold this level could lead to a sharper decline, with the next strong support at $0.26 coming into play.
For DOGE to maintain its upward trajectory, a gold cross needs to materialize and buyers need to push the price above key resistance levels.