Dogecoin (DOGE) The price was rejected by the 200-day SMA on Wednesday and started to decline. Despite this decline DOGE The price seems to be still in an uptrend and the bulls were seen giving a “buy from the bottom” signal. Despite the decline in DOGE price, it seems important to wait for the price to correct further and give the bulls an opportunity to offer a longer rise.
The DOGE price appears to be in the consolidation phase as the “candle” size of the daily closes has shrunk, but a clear pennant or flag price pattern has yet to be seen. It is highly important that the bulls defend the $0.24 region and wait for it to rise above the 200-day simple moving average (SMA) around $0.29 until next week.
Dogecoin price continued to decline today after the drop it experienced on Wednesday. Following this drop, the bulls seem to be inclined to “buy” the bearish around $0.24, which is reflected in the bounce from the red descending trendline. With the DOGE price correcting rapidly during the day and returning to more moderate levels, the length of the candles began to shorten. This indicates that the price has entered a consolidation process as the bears move away from an attempt to push the price action further down.
If the Relative Strength Index (RSI) is evaluated overall, the bulls should have sufficient reason and support to create more “longs” in DOGE price. As a result, the price could bounce back towards $0.35. The only barrier the bulls may face in this scenario seems to be the 200-day SMA, which is currently resisting any tests from below.
The bulls will need to take over the buy-side volume to pull the bears out of the “short positions” and squeeze them in. If any “tailwinds” occur, the rally could accelerate and even sharper spikes occur.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.