The popular meme coin Dogecoin (DOGE) has seen a significant price increase recently, gaining around 12%. The increase in its value has sparked interest in the cryptocurrency community, pushing the coin to a price level of $0.068.
Short-term bull run spotted by DOGE co-founder Billy Markus not done. He reacted to the price increase with a concise but positive “Beautiful”. However, despite the rapid price increase and positive response from meme coin’s co-founder, crypto- A large part of the trading community seems disinterested in the uptrend.
Widespread lack of response, market volatility or meme coin It may be due to various factors such as the unpredictability of their movements. From a technical analysis perspective, DOGE is showing signs of struggling to break through a key resistance level.
Despite bullish activity, DOGE has yet to convincingly breach the 50 Exponential Moving Average (EMA) resistance level. This resistance has been tested at least three times and the price has formed significant wicks above it. However, each of these attempts did not take off and the price retreated below the 50 EMA.
The 50 EMA is a widely used technical analysis tool that averages the price of a coin over the last 50 periods and gives traders an idea of potential support and resistance levels. When a coin is traded above the 50 EMA, it is typically considered bullish, while trading below the 50 EMA is considered bearish. Although DOGE’s price increase is significant, its failure to break and hold above the 50 EMA indicates hesitation in the market. Traders may be cautious given the meme coin’s poor performance over the past few months and the high probability of a market correction after a solid run in June.
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