Here’s Why the Dogecoin (DOGE) Price Is Increasing Sharply This Week

Has the Dogecoin price entered a bullish trend reversal, or is the recent increase merely a relief rally? The price of Dogecoin has surged by approximately 19% this week.

Dogecoin’s price has experienced a notable increase this week, but it is currently facing substantial resistance.

Dogecoin Price Faces Key Hurdle: Golden Ratio Resistance

The Dogecoin price is currently encountering significant resistance at the golden ratio level of around $0.072, which might lead to a bearish rejection.

However, a bullish breakout above this level could propel the price towards the golden ratio at approximately $0.086.

Dogecoin (DOGE) Price Chart. Source: Tradingview

Additionally, the MACD histogram has displayed bullish momentum over the past week, with the MACD lines crossing bullishly. Meanwhile, the RSI is situated in neutral territory, providing no clear bullish or bearish signals at this time.

Monthly MACD Signals Bullish Momentum

Looking at the monthly chart, it’s worth noting that the MACD histogram has been on an upward trend for more than a year. However, the MACD lines are still in a bearish configuration, and the RSI is currently in neutral territory.

In the event that Dogecoin faces a bearish rejection, there is substantial support in the range of approximately $0.053 to $0.06135 at the latest.

Dogecoin (DOGE) Price Chart. Source: Tradingview

These levels could potentially act as strong support zones for DOGE’s price.

Daily Chart Shows Bullish Indicators: What to Expect?

On the daily chart, several bullish signals are evident. The MACD histogram has been trending upwards for multiple days, and the MACD lines have crossed bullishly.

Read More: 9 Best AI Crypto Trading Bots to Maximize Your Profits

However, it’s worth noting that the RSI has reached overbought levels but doesn’t exhibit any bearish divergence at this point.

Despite these bullish indicators, the EMAs (Exponential Moving Averages) are still in a death cross, signifying that the overall trend remains bearish in the short to medium term.

Dogecoin (DOGE) Price Chart. Source: Tradingview

If Dogecoin faces a bearish rejection at the Golden Ratio resistance around $0.072, there is substantial Fibonacci support at approximately $0.0668 and $0.0625.

Additionally, the 50-day EMA provides significant support at around $0.0627, further reinforcing these potential support levels.

4-Hour Chart Indicators Offer Mixed Insights

In the 4-hour chart, various indicators provide bullish and bearish signals for Dogecoin. On the positive side, a golden crossover has formed, which typically confirms a short-term bullish trend.

Additionally, the MACD lines have crossed bullishly, and the MACD histogram shows bullish momentum.

Dogecoin (DOGE) Price Chart. Source: Tradingview

However, it’s essential to note a significant bearish divergence in the RSI, which could suggest a corrective move in the price.

Despite this divergence, there’s a possibility that the DOGE price could find support at one of the two Fibonacci levels, approximately $0.067 or $0.0625, enabling it to continue its upward trajectory.

Dogecoin Price Gains 12% Against Bitcoin

In the context of Dogecoin’s performance against Bitcoin (BTC), the DOGE price has increased by over 11.5% during the current week.

On the weekly chart, there was previously a bullish divergence noted in the RSI, suggesting potential upward momentum.

However, it’s important to highlight that the MACD lines are on the verge of forming a bearish crossover. The MACD histogram has also indicated bearish movement over the past few weeks.

Dogecoin (DOGE) Price Chart. Source: Tradingview

Furthermore, there’s a possibility of the Exponential Moving Averages (EMAs) forming a death cross, which would further affirm the medium-term bearish trend against BTC.

If Dogecoin’s price continues its recent uptrend, it could potentially encounter significant Fibonacci resistance levels around 0.000000227 BTC and 0.0000025 BTC. These levels would be crucial to monitor for potential price movements.

Read More:Top 9 Telegram Channels for Crypto Signals in 2023

Source