- Dogecoin is ready for a reversal after a struggling period since Mid-August
- Demand zone bounce from $0.262 to $0.281 suggests a resurgence of buyers
- However, the bullish thesis will be invalidated if price falls below $0.24 support
Dogecoin price analysis shows that the cryptocurrency is set for a more progressive shift upward, as it went past the $3 mark on September 2. After a lengthy retracement period that started after the August 16 high of $0.34, the critical support of $0.24 was breached, triggering an upswing.
The larger demand zone is set between $0.26 to $0.28, but a breakout past this range is likely as support gathers. DOGE is up 14 percent since the start of the month, and is expected to test the resistance levels near $0.3028.
The larger cryptocurrency market fluctuated downwards during the day after a positive start. The largest cryptocurrency BTC managed to stay above the $50,000 mark after recording a loss of 0.23 percent. ETH was down 1.5 percent as well, to finish at $3,871
Altcoins performed worse, with Cardano down near 3 percent, Ripple 2.75 percent, the same as Polkadot. Dogecoin showed a different trend, rising 0.18 percent at the time of writing, to record at $0.29.
DOGE/USD 24-hour chart: Bullish engulfing pattern confirmed as $0.3 mark continues to be tested
The 24-hour chart for DOGE/USD pair confirms the appearance of a Bullish Engulfing Pattern since the start of the month. It is the first time the pair has crossed the Simple Moving Average (SMA) of $0.28.
The Relative Strength Index (RSI) sits at 56, which suggests there is some room for buying momentum. The price also sits near the middle Bollinger Bands at $0.29, showing that the pair is slightly overbought at current price. Going forward, Dogecoin price analysis shows the upswing is expected to continue up to 35 percent till the next resistance point is set at $0.368.
DOGE/USD 4-hour chart: Ascending triangular pattern in play with overwhelming green shoots
The 4-hour price chart for the DOGE/USD pair in Dogecoin price analysis shows that an ascending triangular pattern has formed. It is where each red candlestick is followed by a trend reversal and the following seller-dominated trade session takes place at a higher price.
The last 3 trading sessions confirm bullish action where price has moved significantly above the SMA and heading for consolidation near the $0.3 mark. As the current trade session continues, a buyer dominated closure is expected as price moved up from $0.295 to $0.30.The 4-hour RSI is the same as for the 24-hour close, at a mid-value of 56.
Dogecoin price analysis conclusion
Dogecoin price analysis confirms that the pullback commencing after the August 16-high pushed the token down to the $0.24 support, from where it has propelled the meme cryptocurrency towards settlement near the $0.3 mark. From here, a 35 percent upswing is expected in the run-up to $0.40.
The current trend is expected to continue till resistance is met at $0.328, and a decisive close from here will open the door towards $0.40. However, if buyers fail to provide momentum, DOGE may pull back towards the demand zone at $0.262 to $0.281. In case of a further decline, support at $0.24 may be breached and the bullish thesis invalidated.
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