Dogecoin: Where will dogecoin move after the bull?

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Disclaimer:  The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

  • After finding a bullish volatility breakout, Dogecoin has seen a bullish pattern on its daily chart.
  • The DOGE Open Interest in the last 24 hours has corroborated a growing bullish trend.

Dogecoin's October 25th (DOGE) bounce from the $0.065 support has formed a solid foundation for the bulls to post exponential gains on the charts. As a result, the coin's meme jumped above its daily 20/50/200 moving average to present a one-way bullish edge.

Meanwhile, the recent uptick stems from a bullish pattern on the daily time frame. At press time, DOGE is trading at $0.13, up 5.53% over the past 24 hours.

Will DOGE continue up?

Source: TradingView, DOGE/USD

The recent rally assisted buyers to flip the $0.12 mark from resistance to support after an astounding 140% ROI from October 25 to November 1, meanwhile, a ceiling of 0.145 dollar maintained the green candlestick sequence.

Additionally, recent price movements have created a bullish pennant over the past few weeks. Any breakout on the pattern could position the coin to the upside.  

A sustained swing above the pattern can cause DOGE to rally towards the $0.169 area in the near term. A break above the $0.145 ceiling could reassert the upside opportunity. 

In general, pennant breakouts are more likely to occur when the volume is trending up. But in this case, the volume is trending down. Therefore, any immediate drop could continue to find a reliable recovery base in the $0.12 area.

The Relative Strength Index (RSI) eased slightly from the overbought mark but remained above the 70 mark. Any reversal in the index could ease the buying pressure.

DOGE future open interest

Source: Coinglass

The open interest of the dog-themed cryptocurrency over the past 24 hours across all exchanges has registered an increase of over 8.5%. Correspondingly, DOGE has increased in price by more than 5% in 24 hours. This reading confirmed the bullish trend in the futures market.

Finally, the dog-themed coin shares an 84% 30-day correlation with the king coin. Therefore, tracking the movement of Bitcoin will complement these technical factors.


Nov 06, 2022

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