Dogecoin is currently driving the market’s current recovery, at least in part. The meme coins price reached $0.0945 on Monday, in the midst of the shockwave brought about by FTX’s implosion.
Despite the strain, Dogecoin still proved its resilience as it soared 25 percent in the last week, data from Coingecko show, Monday.
Here’s a quick rundown as Dogecoin fights back against the bear market:
There is a chance that by 2023, Dogecoin will be worth $1
The technical indicators are quite optimistic, displaying many strong levels of support
In order to break through to $0.1265, bulls should look to $0.1076 and $0.1186.
Dogecoin is trading at $0.0955 on a red candle. Bulls are optimistic that 2023 will be the year DOGE reaches the magical $1 level, thanks to the announcement by ETH co-founder Vitalik Buterin and Twitter and Tesla CEO Elon Musk that they are working on an update for the meme coin.
Can Dogecoin Sustain Its Positive Pace?
Since DOGE has been performing better than Bitcoin and Ethereum in the market rebound, the coin’s technicals are looking highly positive.
The bulls have the backing of the Bollinger band, and the expansion of the band’s middle band provides dynamic support at $0.0848.
Increased volatility from a wider Bollinger band increases the probability of a price rally.
The EMA ribbon supports the rally throughout all significant time scales. Currently, the price action indicates the overbought side of the RSI, which bulls must monitor.
However, bulls might position themselves at $0.0890, which is the current price movement’s support.
The money flow indicator validates the recent price action, strengthening the positive feeling. Long-term bullish strength is demonstrated by the regression channel’s output of 0.14.
If this uptrend persists, bulls should aim for $0.1076, the major level of resistance that, if breached, would finally support the bull run. The secondary objective would be $0.1186, resulting in a final objective of $0.1265
This would inevitably recover lost ground from the DOGE catastrophe earlier this month.
DOGE & The Challenging Path To $1
Current market activity will inevitably increase investor confidence in cryptocurrencies. Not to mention reports of DOGE being utilized in Twitter payments, which, if this momentum continues, will eventually bring the price near or above $1.
However, investors and traders must exercise caution as the market begins a phase of recovery, which makes investor sentiment extremely volatile.
DOGE total market cap at $12.5 billion on the daily chart | Featured image from Coin Edition, Chart: TradingView.com