Dogecoin may end the week with no significant price change, as it trades close to the level at which it started the session.
However, this does not mean that the last five days were devoid of volatility. It retraced to $0.184 and peaked at $0.205 during this period.
While Dogecoin may be edging closer to registering no improvement in prices, the 1-week chart prints green signals. A closer look at the chart reveals that the selling pressure is fading. For example, the asset registered a 16% decline two weeks ago after rebounding from a low of $0.13. Last week, it posted losses exceeding 6% after rebounding to $0.175 (a higher low).
During the current session, it posted yet another higher low but prints a doji. Over the last three weeks, the altcoin registered progressively higher lows and smaller losses, suggesting that the bulls are absorbing the excess supply and that buying pressure is gradually increasing.
The trend during the period under consideration suggests that the memecoin may be gearing up for a massive surge that may occur during the next seven-day period.
Dogecoin Bullish Divergence
Indicators on the 1-day chart support the prediction of a better price performance next week. For example, the moving average convergence divergence prints green signals at the time of writing. It flipped bearish a few weeks ago, but its decline halted as selling pressure eased. Recently, the 12 and 26 EMAs intersected, and a bullish divergence is underway.
Aside from MACD, the bollinger bands print similar signals. During its biggest decline in October, the asset slipped below bollinger’s lower band. It repeated the trend a week later, but prices have not responded. Traditionally, a slip below this key level results in a rebound, which will see the asset retest the upper band. It has not yet happened, meaning it will take place in the coming days.
Nonetheless, it is worth noting that the altcoin was oversold during this period. It has since recovered and is trending at 42.
Aside from the indicators, the recent price movement formed a triangle pattern. When this pattern appears on the chart, it means that the asset is gearing up for a breakout.
What it Means
Traditionally, the triangle pattern does not point to the direction of a breakout; it hints at the end of the ongoing range-bound movement.
Aligning the chart pattern with the highlighted indicators suggests that Dogecoin will surge, reinforcing the view that the uptrend will fully resume next week.
The fibonacci retracement levels indicate that the asset is trading close to the 50% mark. A closer look at the chart reveals that it traded above the 38% fib level for most of the last 14 days.
Nonetheless, previous price movement shows the importance of the 50% fib level. Before the latest declines, the memecoin held this level, which also served as a launchpad for an attempt $0.30. Breaking above $0.20 in the coming days may mean an impending retest of the highlighted resistance.
However, the triangle chart points to a high likelihood of a slip to $0.18 before breaking out. As a result, the asset may retrace lower on Sunday or Monday.
Get Trending Crypto News as It Happens. Follow CoinTab News on X (Twitter) Now
