Dogecoin (DOGE) appears poised for a potential recovery following an extended period of decline. The market is closely watching the US Securities and Exchange Commission (SEC) in anticipation of a favorable decision regarding the approval of spot Bitcoin exchange-traded funds (ETFs).
The prospects for Dogecoin’s price resurgence are heightened, especially if the SEC greenlights the launch of spot Bitcoin ETFs. This positive development could lead to capital inflows from the Bitcoin market into altcoins with significant market capitalization, including Dogecoin.
Notably responsive to Bitcoin’s price movements in the past, DOGE is currently showing signs of a recovery, finding support at $0.07520. The uptrend is evident in the rising Relative Strength Index (RSI) and the increasing Average Directional Index (ADX), indicating growing momentum and trend strength, respectively.
Dogecoin’s Potential Ascent And Bearish Warning Signals
Should buyer momentum continue to strengthen, DOGE’s price may surpass the $0.08753 resistance, potentially flipping the descending trendline into a support. This could result in a 10% ascent, creating opportunities for further upward movement.
In a bullish scenario, Dogecoin could venture into the supply zone ranging from $0.09658 to $0.10210. To validate the continuation of the intermediary trend, a candlestick close above the $0.09934 midline within this order block is essential.
In more optimistic scenarios, Dogecoin’s price might turn the supply zone into a bullish breaker, potentially reaching the $0.10730 range high. However, caution is warranted, as the Awesome Oscillator (AO) indicator in negative territory suggests the presence of a bearish pull in the DOGE market. If bullish efforts falter, a breach below the $0.07520 support could lead to a more substantial decline, with the $0.07000 psychological level as a potential target.