Dogecoin remained in the dark for a prolonged period as traders’ sentiments towards the token seem to be vague. During the recent decline, DOGE price suffered a huge loss of over 20% as it lost the crucial support at $0.1042. However, the token was able to regain its level after a brief consolidation, reviving the hope of a fair uptrend as Dogecoin price has reached a correction. Hence, it seems to be good to go.
DOGE price action resembled a steep downtrend as the bullish disruption was lifted at short intervals. The token reached the peak of consolidation, fell below the support and has now risen above the support turned resistance, which is expected to form a strong base for the next bullish move. Meanwhile, technicals suggest a relaxation phase before the major price move as bulls appear to have been accumulating for a while.
As seen in the chart above, the DOGE price has broken out of the bearish descending triangle and rose above the broken support after a minor pullback. This move seems to have made traders somewhat hopeful for the next price action. Moreover, the price has recovered after hitting the lower bands of the Bollinger, which is expected to push prices towards the upper band near $0.15.
Unfortunately, MACD and DMI do not support the bullish development, although the RSI maintains a healthy uptrend. Selling pressure has subsided, but unless buying volume increases, no concrete trend reversal is expected. Therefore, Dogecoin price is expected to maintain a horizontal consolidation along the gained support, which may force the price to remain consolidated for a while.
However, the volume has returned to its initial levels, suggesting that the Dogecoin price may continue its initial trend. Therefore, the top memecoin is expected to remain passive until the market turns extremely bullish with a huge influx of buying volume.
