Dogecoin seems to lick its wounds after losing 9% following a bearish pattern on its price chart. The meme token saw gains over the past few days and rebounded from a massive region. Dogecoin also flipped the four-hour 20 Simple Moving Average to bullish.
If DOGE manages to move past the 50 Simple Moving Average confluence and overcome the resistance at $0.2340, it will surge towards $0.260. From here, it can rise to retest its swing highs of 6 October. While publishing this article, the canine-themed crypto exchange hands near $0.2373, gaining more than 5% in 24 hours.
Four-hour chart
Dogecoin entered a recovery mode after suffering a 9% plunge from its descending triangle formation. Though bulls magnified their efforts around the defense line at $0.2190, DOGE required a persisting pressure to overpower the price ceiling at $0.2350 and the 50 Simple Moving Average.
A significant close beyond this level will result in another 14% upswing to $2717. However, buyers should conquer $0.2487, then $0.263 to support the optimistic outlook. Meanwhile, external triggers and crypto market support are essential for such price actions.
If DOGE encounters rejection near the 50 Simple Moving Average, it will indulge in sideways movements. Breaching under $0.232 would need a double bottom around $0.2190 to trigger a comeback.
Now What?
Though Dogecoin indicators displayed early buy gestures, each requires further progress to support skepticism. For example, the Relative Strength Index has to rise past 55 for DOGE to confirm a bullish trend. Also, the Awesome Oscillator and the MACD should climb above their half-lines for increased buying pressure.
At the moment, the top ten digital currencies trade in green after a positive mood in the past 24 hours. If the crypto space persists with bullishness, Dogecoin can record uptrends in the coming seasons. Moreover, DOGE trades on a recovery mode for now.
Final Thought
Dogecoin has to stretch its actions past $0.2340 to accumulate momentum for upsurges. If DOGE sees external catalysts to pump the dog-themed, it might witness a 14% upswing. Meanwhile, enthusiasts should wait for a significant entry point before making any move.
