October 7, 2022


Over the past seven weeks, Dogecoin [DOGE] has moved towards the nine-month trendline resistance (white, dashed) on the daily chart. This gradual revival helped the meme-coin to accelerate growth to its 20 EMA as it tried to trigger a bullish reversal on the EMA ribbons.

However, DOGE struggled to find a flying break away from the Point of Control (POC, red). With a host of resistances in the $0.07 zone, buyers need to increase buying volumes to finally confirm a potential breakout. At press time, DOGE was trading at $0.0689, up 2.85% in the last 24 hours.

DOGE daily chart

Source: TradingView, DOGE/USD

Resurgence of markets from the 15-month support in the $0.049-$0.052 range helped the coin maintain a position near the POC level. Meanwhile, buyers tried to break above the shackles of the EMA bands.

Also, the nine-month trendline resistance coincided with the 50 EMA to form a stiff barrier. While buying pressure seems to be building up around the limits of these bands, any break above the $0.07 level could force a bullish volatile move.

Over the past month, DOGE has formed a symmetrical triangle-like structure on the daily time frame. Given the slight previous uptrend, the coin had breakout potential. Any break above the pattern could trigger a test of the $0.077 ceiling in the coming sessions.

However, a bearish intervention at the $0.07 mark could help sellers extend the bearish phase. Any close below the $0.065 level would act as a potential trigger for an upside cancellation.

Logic

Source: TradingView, DOGE/USD

The RSI finally broke the 52 resistance to claim a bullish advantage. Bulls still needed to sustain the uptrend above this level to ensure continued growth on the chart.

Interestingly, the CMF and Accumulation/Distribution lines made lower lows during the ten days. This trajectory confirmed the existence of a bullish divergence with price action. But the alt was yet to show a strong directional trend as evidenced by the ADX.

conclusion

DOGE was at the top of its symmetrical triangle structure at the time of writing. Subsequent candlesticks could confirm the bullish bias revealed by the indicators. The objectives will remain the same as discussed.

However, the dog-themed coin shares a 79% 30-day correlation with the king coin. Thus, tracking the movement of Bitcoin would complement these technical factors.



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