Since reaching highs, Dogecoin, the largest memecoin by market capitalization, has plummeted drastically, currently falling over 90% from its highs despite not being significantly impacted by current market trends. The DOGE price broke above a descending trend that acted as strong resistance throughout December 2022.
During the recent upswing, the DOGE price showed potential to rally to the midpoint of the recent downtrend. In the past few days, the price displayed precise signals indicating a change in market behavior.
Currently, bulls have regained levels above $0.07 after testing bottoms at $0.661. The price rose above the 200-day MA levels just before closing the previous day’s trade, indicating a revival of the bullish trend.
Moving within a constant ascending parallel channel since the beginning of 2023, the DOGE price is displaying immense strength, aiming to reclaim the lost levels above $0.08 very soon. Meanwhile, the trading volume also has intensified, largely dominated by the bulls, and hence the price is expected to remain inflated for a longer time. With a lower pace and reduced volatility, the asset may not attract the bears that may help the bull to hold the grip over the rally for a long time ahead.
The market sentiments in 2023 are assumed to be pretty lighter than in 2022 and hence the possibility of a constant upswing emerges. In the larger perspective, the Dogecoin price appears to be poised for a larger price action as the Bollinger Bands have squeezed in the daily chart. Additionally, the MACD is displaying the possibility of a bullish crossover as the price is about to rise above the 20-day SMA which represents the middle bands.
Besides, the bullish reversal of RSI, a couple of times denotes the self-assurance of Dogecoin(DOGE) price to reclaim the positions above $0.08 anytime from now.