- Dogecoin ($DOGE) is currently trading around the $0.071 mark.
- Short-term and long-term trends are aligned to push the price up.
It is the 12th of August; Dogecoin ($DOGE) is trading at $0.07158 at press time, up by a modest 2.22%, with its trading volume surging over 66% to the $594.73 million mark. Moreover, this trading session has ranged between $0.06992 and $0.07286, as reported by CoinMarketCap data.
A large amount of high-leverage short positions were liquidated as $DOGE broke through a resistance line and punched through the first significant sell wall. Three major bullish signals were stacking on the daily chart simultaneously.
Bullish divergence played out over more than a month; the price printed lower lows while RSI formed higher lows, a classic bottom formation signal. Price then broke through the descending trendline, confirming the shift in momentum.
In addition, the RSI followed by clearing its own ascending resistance trendline, providing the final confirmation. When it shows strength while price breaks resistance at the same time, the bottom is likely in.
$DOGE is consolidating in a rectangle between $0.068 support and $0.075 resistance. The next sell wall sits at the higher target, which needs to be broken for the next leg higher. A break above $0.075 opens the path toward $0.080 as the major target. Notably, a sturdy fall could push the price down to $0.063.
Technical Chart: Where is $DOGE Momentum Heading?
The Moving Average Convergence Divergence (MACD) line is above the signal line, and both lines have crossed above zero. Short-term buying is moving faster, keeping an active bullish buy signal. Also, the primary market structure of $DOGE is firmly in a long-term uptrend.
Overall momentum is fully controlled by buyers, and the short-term speed and long-term trend are perfectly aligned to push the price higher. The path of least resistance is firmly up, showing high conviction from the buyers.
Furthermore, the daily Relative Strength Index (RSI) value at 62.47 exhibits strong bullish momentum, with buyers firmly in control of the trend. It is positioned above 50, confirming that buying volume is significantly outperforming selling pressure.
It has plenty of room to climb before hitting the overbought zone. 60s are the ideal zone for an uptrend, without the immediate crash risk. $DOGE is climbing with solid upward power and has clear runway to extend its move higher.