Dogecoin price appears to have launched a new bullish phase with bulls eager to push above resistance at $0.2. As sentiment gradually improves, investors are beaming with hope to see a stronger trend reversal.
An assessment of the current technical and fundamental outlook reveals that various factors could impact Dogecoin price action going into August including this week’s FOMC meeting and investor behavior.
Dogecoin Price Analysis: Is A Rally Possible?
After playing defense and losing at it in the first weeks of July, bulls finally assumed the reins, catalyzing a trend reversal from support at $0.1.
Dogecoin made a quick swing to $0.14 validating a falling wedge pattern. Although expected to guide a 70% rally to $0.216, a retest of the upper trend line could offer unique entry positions.
A falling wedge is a bullish reversal pattern formed as the price slides between two slanting trend lines.
Dogecoin price chart | Tradingview
Based on CoinMarketCap data, bulls are likely to have run out of steam as trading volume dropped to $800 million. Dogecoin must uphold the immediate confluence support established by the 50-day Exponential Moving Average (EMA) and the 200-day EMA.
A retest of the upper trend line support cannot be ruled out while the presence of the 20-day EMA will further increase the chances of Dogecoin price resuming the uptrend.
The Moving Average Convergence Divergence (MACD) indicator recently flashed a buy signal encouraging traders to buy the dip. However, the bulls must fight to keep this call to buy active this week.
How Dogecoin Futures Open Interest May Affect This Week’s Rally
Dogecoin futures interest open market has since last weekend improved to reach above $5 billion.
Increasing futures open interest signals growing market interest. It suggests more traders are taking positions, potentially indicating a stronger price trend.
Dogecoin traders can leverage the positive OI data to confirm the existing trend as upward but also identify potential reversals, in the event it starts to drop.
The meme coin hype could also rope in Dogecoin’s trend in the second half of the year. Dogecoin and its younger siblings including BOOK OF MEME in the sector seem poised to move alongside Bitcoin’s surge to test the previous all-time highs.
Frequently Asked Questions (FAQs)
The breakout from a falling wedge pattern affirms the bullish thesis with DOGE likely to climb above $0.2 this week.
Increasing futures open interest signals growing market interest.
No. Meme coins seem to be emerging as a key sector of the crypto market with investors seeking quicker gains.
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John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.