Dogecoin reclaimed $0.40 in the early hours of Tuesday. It shot up after dipping to a low of $0.33. The recovery represents a resumption of bullish actions on the coin.
DOGE is nearing the end of its three-day downtrend, which started on Saturday. The asset dipped from $0.41 and closed below $0.39. The dip worsened on Sunday, as the crypto saw notable price declines. It lost the $0.35 support, hitting a low of $0.34.
The altcoin saw notable recovery during the previous intraday session but failed to sustain the momentum. The same trend may play out during the current intraday session. Dogecoin trades at $0.37, more than 5% lower than its high. Nonetheless, up by over 6%, the bulls have a higher chance of keeping prices around the mark.
The largest memecoin’s action reflects the same sentiment as most crypto assets. Other memecoin are rising as the market becomes more bullish. The AI16Z token continues its uptrend on Tuesday, surging from $0.93 to reclaim its $1 status. It trades at $1.14 and gained 22% at the time of writing.
Why is DOGE Up?
Crypto fear and greed have slightly increased over the last 24 hours. The price was at 58 on Monday but at 59 on Tuesday, indicating improved trading conditions. However, traders have yet to fully embrace the bullish stance as they grapple with uncertainty.
Donald Trump’s inauguration became a sell-the-news event as the crypto market saw a notable price increase earlier. Investors are yet to decide whether to end the selloffs. This sentiment becomes more glaring as several cryptocurrencies struggle to hold critical levels after notable surges.
DOGE benefitted from massive bullish fundamentals. The Department of Government Efficiency (D.O.G.E) started operations on Tuesday after the president’s swearing-in on Monday. The agency made some adjustments to its website. It added the dogecoin logo as its, fueling significant attention to the asset.
This is not the first time the asset has benefitted from such exposure. Recall that during the final stretches of the presidential campaign, the memecoin saw similar surges as Tesla CEO Elon Musk shouted D.O.G.E in the New York rally.
Investors may anticipate that the apex memecoin will continue to see such exposure. With the SpaceX head leading the government agency, it is almost certain further statements or actions may offer the the coin more attention.
What’s Next for Dogecoin?
Several indicators on the one-day chart hint at further upside movement. The asset trades its 50-day exponential moving average. It bounced above this critical mark three times in the last three days. The latest rebound saw prices reclaim new highs.
The Bollinger bands reveal cryptocurrency trading between the upper and middle bands. It trends neutral while maintaining a bullish posture for further price increases. It may have edged closer to the upper SMA around $0.42.
The moving average convergence divergence halts its selloff signals. The 12-day EMA was in a downtrend as the bearish convergence progressed. However, it resumed its upward movement as buying sentiment increased.
However, it’ss not in the clear. The 50-day MA is declining and edgings closer to the 200-day MA. If DOGE fails to resume massive upside movement, a death cross may be imminent.
Dogecoin trades close to the 23% fib level. Previous price movements suggest that it further declines to the 38% fib level at $0.31.
