Dogecoin Recovers 19%: Charts Suggest New Upside Opportunities!

Last week, the Dogecoin (DOGE) price peaked at $0,26, but this week it saw a significant correction of 19%, bringing the price back to around $0,216. Despite this drop, new opportunities are emerging for investors.

Dogecoin’s blockchain activity shows an increase in new addresses, which is a sign of renewed interest from retail investors. These kinds of signals can point to a possible new price increase, which makes it interesting to keep an eye on developments around DOGE.

How is the price doing?

On the daily chart, Dogecoin's price trend is mostly bullish, even though the recent correction has taken place. There is upward pressure, but also profit taking, especially visible in the rejection around the $0,26 level. The Relative Strength Index (RSI) remains above 50, which is usually a sign of continued bullish momentum. Moreover, DOGE has found support at the 50% Fibonacci retracement level around $0,21, which is currently acting as a crucial support zone.

A positive outlook

On the 4-hour chart, Dogecoin can be seen breaking through resistance around $0,22 – a key level that previously formed a local top on May 16. This breakout results in a higher high, which often bodes well for further gains. The focus now shifts to forming a higher low, preferably above $0,21. However, a downside breakout would mean a lower low and put pressure on the positive expectations.

The market is currently balanced with about equal numbers of longs and shorts. Despite this, 75% of all active accounts are long positioned, which is a clear sign of investor optimism.

Long-term outlook remains promising

the recent volatility, especially the price dip, offers interesting opportunities for investors looking for an entry point. In the long term, the picture looks favorable: Dogecoin recently broke through a downward range. As long as the price does not fall back into that old range, a new price explosion is in the offing. Does the Dogecoin universe have more surprises in store?

Frequently Asked Questions

What are the current price levels of Dogecoin?
The current price of Dogecoin is hovering around $0,216 after a recent 19% correction.

What's Influencing the Market Sentiment Around Dogecoin?
The increase in new addresses and the bullish signals on the charts indicate renewed interest and optimism about DOGE's future direction.

What should investors keep in mind?
Investors should keep a close eye on the support zone around $0,21 and the need for a higher low to determine if the positive momentum can be sustained.