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Dogecoin Price Analysis: Dogecoin is trading above $0.070 as bullish momentum builds

techsm5

Dogecoin price analysis indicates that the bullish momentum resumed on the second day of the new year after a period of consolidation. Dogecoin is trading at $0.07195, up 3.36% in the past 24 hours. Dogecoin trading volume has seen a steady increase, reaching $336,406,016t in 24 hours, with major exchanges such as Binance leading the way. Dogecoin price broke out from a previous resistance zone at $0.065 and is currently targeting a new target of $0.076, with strong bullish momentum continuing to be seen across the board.

Analysts believe that if Dogecoin continues to perform in this manner and maintains its price above the $0.07 level, it could record further gains in the near future. This could spell a strong start to 2023 for Dogecoin, with some speculating that it could potentially hit all-time highs of $0.10 in the coming days. The Dogecoin market has grown significantly over the past few months with many new investors joining the fray and pushing prices higher. This trend is expected to continue into the new year and could help Dogecoin achieve its goal of becoming one of the leading digital currencies.

Dogecoin price analysis on a daily chart reveals that Dogecoin opened the daily trading session at intraday lows of $0.14 and moved towards the resistance of $0.18, forming a bullish trend as is trading above the 50-day exponential moving average (EMA) line. The 200-day EMA line crossed the 50-day EMA, signaling that an uptrend has established and the price is likely to rise higher in the coming days.

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1-Day DOGE/USD Price Chart, Source: TradingView

The Fibonacci retracement levels also show that DOGE is trading between the 38.2% and 50% Fibonacci retracement levels, indicating a possible upward price trend ahead. Additionally, the RSI (Relative Strength Index) indicator broke above the 50 levels, suggesting that the bulls are taking over the market and a strong uptrend may be forming.

Looking at other technical indications, DOGE is trading in a consolidation pattern, with the 50-day EMA line and the 200-day EMA line forming a converging trend. This pattern forms when short-term averages gradually converge towards longer-term averages, suggesting that a breakout may be imminent.

4-Hour Chart Dogecoin Price Analysis: Volatility Rising

Dogecoin price analysis on the 4-hour chart shows that DOGE prices have made significant price changes over the past few hours, with prices ranging from $0.06936 to $0.07236. The Bollinger Bands indicator also indicates a high level of volatility, with the upper and lower bands rapidly diverging when DOGE prices make sudden moves. Also, the Relative Strength Index (RSI) has been rising steadily and currently sits at a high level of 59, indicating that the asset is currently near the overbought region.

Dogecoin is likely to face rejection at current levels, and the price could drop to $0.06936 if traders take profits from the current overbought region. However, if the bulls are able to maintain control, Dogecoin might break out of the current resistance level of $0.07236 and test higher levels.

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4-Hour DOGE/USD Price Chart, Source: TradingView

Such a breakout would open the door for a possible test of $0.085, which is a crucial resistance level that Dogecoin has been unable to breach since mid-November.

Further technical analysis suggests that a sustained move past the $0.085 resistance would open the door for Dogecoin to extend its rally towards $0.10 and perhaps beyond. The MACD is well placed above the red signal line, indicating that the bulls are likely to remain in control.

Dogecoin price analysis shows that Dogecoin seems to be in a bullish momentum. With further technical analysis, it is possible that Dogecoin will extend its rally towards $0.10 if the current resistance at $0.085 is broken. The key support levels for Dogecoin currently remain at $0.07 and $0.055, respectively, and breaking these supports could signal a trend reversal and a possible bearish future for Dogecoin.

techsm5

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