Will DOGE Prices Bounce From The Support Trendline For A 40% Jump?

Bullish recovery of 30% in early August, the DOGE prices fell sharply back to the support trendline. Currently, the prices consolidate near the confluence of the 50-day SMA and the support trendline, preparing a bullish launch above the $0.70 supply zone. Should you consider buying Dogecoin before the bullish launch?

Key Points:

Source - Tradingview

DOGE Technical Analysis

The DOGE prices recently displayed a bullish reversal from the 50-day SMA to jump 30% within two weeks in early August. However, the extreme supply inflow at $0.86 resulted in a bearish turnaround which quickly brought the prices back to the 50-day SMA within three days.

Currently, the price action displays a sideways trend near the 50-day SMA while the prices take low price rejection from the support trend line. However, the supply zone at $0.070 and the 100-day SMA act as the overhead resistance.

The bearish turnaround lowers the possibility of a bullish crossover between the 50 and 100-day SMA. However, a bullish breakout will ensure a positive crossover which may further fuel the bullish trend. The high momentum bullish breakout rally may drive the DOEG price above $0.075 to reclaim dominance at $0.10.

On a contrary note, a bearish breakout of the support trendline may stop the price at the $0.060 or $0.055 mark.

Technical Indicators

Amidst a sideways price action, the RSI slope movie in the negative territory indicates the trader sentiment is bearish for Dogecoin.

The downsloping MACD and the signal line are nearing a breakdown from the neutral zone. This crossover will offer an additional confirmation for the bear trend continuation.

Hence the technical indicators oppose the bull run possibility in DOGE prices.

Resistance Levels: $0.075 and $0.093

Support Levels: $0.063 and $0.055