Dogecoin has lost crucial support levels leading to a price correction. Even though DOGE has seen bearish movements in the past few days due to a general crypto market downswing, the dog-themed meme coin could shift toward a bullish territory in the short term.
Upside Momentum Building For Dogecoin
In light of bearish performances, Trader Tardigrade, a market expert and investor has highlighted an encouraging trend in Dogecoin’s recent price action. The expert claims that DOGE is showing signs of a potential trend reversal toward renewed bullish momentum.
After a period of downswing, Trader Tardigrade points to key technical indicators that suggest the meme coin will gain traction soon. Specifically, the expert points to a bullish divergence on the DOGE’s 1-day Relative Strength Index (RSI), suggesting that upside momentum is underway.
A bullish divergence typically occurs when prices move lower, but indicators are showing bullish signals or moving upward. Trader Tardigrade noted that DOGE forms a new lower low, while the RSI remains at a higher low. The development indicates that the momentum may be transitioning from a downward trend to an upward trend.
With buying interest surging and technical indicators displaying bullish signals, Dogecoin’s path toward a positive move seems likely in the short term. Should these trends continue to build, DOGE might overcome significant resistance levels, paving the way for a strong price rebound.
In the monthly time frame analysi
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Author: Godspower Owie
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