Dogecoin’s [DOGE] Short-term Technicals Depict Contradictory Picture

Dogecoin [DOGE] has rallied hard over the past month and the hype is yet to settle down. Signs of the token’s price cooling down were invalidated right after billionaire Elon Musk, rapper Snoop Dogg and Kiss bassist Gene Simmons tweeted about it. It hit an ATH of $0.084 before taking a minor plunge.

The tongue-in-cheek token featuring a Shiba Inu has replaced Bitcoin Cash [BCH] to become the 10th-largest cryptocurrency by market cap. Thanks to the many celebrities that have gone on the tweet about it, the joke coin has had a better luck in attracting mainstream attention than most cryptocurrencies.

Despite retracing from a fresh all-time high, DOGE was still up by more than 24% over the past day and was priced at $0.074. Its market cap also saw a double-digit surge in the past 24-hours climbing to $9.39 billion while its trading volume for the same time-frame rose to $14.65 billion.

Dogecoin [DOGE] Daily Chart:

Even after a bullish start for the day, the 4-hour chart for Dogecoin depicted a formation of a mega-bearish ascending channel pattern which upon completion results in a breakout to the negative side.

It is important to note that the moving averages has once again shifted its momentum to bullish after hints of convergence following price downtrend earlier last week.

Following the latest tweets by the prominent personalities including Musk, the gauge between the 50 DMA [Pink] and 200 DMA [Purple] has once again increased demonstrating a positive outlook.

The MACD suggested minor convergence hints with the signal line which could give an inkling of a potential bearish crossover in the near-term.

To further validate a bearish onslaught, the Stochastic RSI also appeared to undergoing a bearish crossover near the sell-region.

The RSI, on the other hand, just noted a mild decline and was well above the 50-median line indicating that the buying pressure was still intact in the coin market.

If the bears do manage to gain an upper hand in DOGE’s price, the meme-coin could find support at $0.046, $0.0313 and $0.020 respectively while its resistance continued to hover at $0.082.

Chayanika Deka: Chayanika is a full-time journalist at TronWeekly with over two years of experience. A graduate in Political Science and Journalism, she focuses on the political and financial impact of cryptocurrency and blockchain developments.