Dogecoin Breaks Out but Still Faces Resistance at 200 DMA!
Dogecoin has held on to its gain in the last seven days with an intense buying action. This rally has been fed by the inclining trend line, which the buyers and sellers seem to be respecting. Still, the resistance at 200 DMA is not something that can be ignored or rejected straightaway.
Cryptocurrencies are known for volatility, but Dogecoin failing even to cross the 200 DMA indicates a possibility of either another flash crash awaiting our way or the interest of larger institutions in holding more Dogecoin at a lower valuation. This prediction is fed by the consistent buying spokes we have witnessed on Dogecoin in the last few months.
With a market capitalization of $34.65 billion, DOGE is away from the eighth position by a margin of above 20%. This gap has been consistently increasing in the last few days as Dogecoin has offered minimal gains compared to the other cryptocurrencies occupying the top eight positions.
Dogecoin Price Analysis
Dogecoin has emerged as a strong contender for your interest. After its recent attempt at breaking the 200 DMA, which succeeded in some aspects. Dogecoin cannot be sidelined and can offer huge profits once it becomes trending in the near term.
Dogecoin has taken support from the closing lows of October 21, 2021. The buying trend has helped it breach the nearest resistance of $0.2626 while the 200 DMA is within reach. Moreover, this critical level was breached for a moment before the seller took control of the situation. Thus, Doge has excellent potential and is marginally away from around 7% from the resistance level.
Buying at this crypto can be seen from sudden spikes in transaction volumes, with a point in RSI level reaching close to the overbought levels. RSI getting this level is an indication of trending price action and support from buyers. While the story around 200 DMA could put some selling pressure, this wouldn’t occur before buyers control the situation.
Based on our DOGE predictions, holding on to the previous marked resistance level of $0.2626 will further be adding strength to this price action. Still, a retracement to the lows of October 24 will be creating some negativity for Dogecoin in the near and long term both. Therefore, $0.20 should still be considered as the last nail in marking this crypto headed towards destruction.
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