- Top dog coin Dogecoin inked 22% monthly gains to attain $0.10.
- Pro analyst spots a bearish tendency on DOGE’s weekly charts.
- Two resistance levels apply sell pressure, but there’s a catch.
The leading memecoin and the second largest Proof of Work (PoW) blockchain, Dogecoin (DOGE), embarked on a wild journey since the 10th anniversary of DOGE’s creation. On December 6, 2023, DOGE mooned above 10 cents for the first time since Elon Musk’s acquisition of Twitter, which led to a market-wide altcoin rally in November 2022.
Not surprisingly, the 22% monthly upswing for DOGE is driven by social hype, as SpaceX is getting ready to launch the Dogecoin-funded DOGE-1 X-Band rocket to the moon this month. Dogecoin has many community developers and meme creators, popularly known as DOGE Army, in its vibrant community.
At the time of publication, DOGE is changing hands at $0.096226, according to CoinGecko. As the market correction kicked in with a 2.1% downturn in the last 24 hours, the price range of $0.095 – $0.097 is crucial for DOGE to determine the price direction. The barrier hosts a multi-billion resistance wall caused by crypto traders attempting to break even or profit at this price range.
Make-or-Break Levels for DOGE Upon Trend Reversal
Besides the social sentiment, technical indicators can show a completely different side of a cryptocurrency’s behavior. Now, Dogecoin revisits the confluent resistance at $0.095 with two possible scenarios, pointed out by professional crypto trader Ali Martinez in a recent tweet.
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This time, the conditions for DOGE’s bull run to continue are thwarted by the ‘Sell’ signal according to the Tom Demark (TD) Sequential. Measuring in weekly terms, the nine-fold TD Sequential is a crypto trading tool used to determine the reversal of a price trend. If the bears indeed take the steering wheel in the crypto markets, Dogecoin could freefall to $0.078 support levels.
For Dogecoin to break the bearish scenario, it must sustain above $0.11 on the seven-day charts, a price range unseen since November 2022. The upward trajectory is also hindered by the northward resistance at $0.097, which previously formed a double-top pattern. Regardless, DOGE broke the barrier twice, two consecutive days on December 10 and 11, 2023.
On the Flipside
- Dogecoin’s Relative Strength Index (RSI) hinders around 75, which indicates an overbought condition in the last seven days.
- Dogecoin’s price continues to perform with a 0.95 correlation with Bitcoin (BTC), which means Bitcoin’s rallies can catalyze DOGE.
Why This Matters
Dogecoin is one of the veteran alternative cryptocurrencies, created in 2013. The mass appeal often generates social mentions for the blockchain and contributes towards global crypto adoption.
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