cryptonewsz.com
On April 14, the biggest memecoin, Dogecoin ($DOGE), witnessed a major spike on its daily chart following a rally in the crypto market, soaring its value by over 4%.
The spike in cryptocurrency has taken place after the overall crypto market gained a rally with a bullish sentiment, where Bitcoin ($BTC) broke above $75,000 on Tuesday.
At the time of writing, Dogecoin ($DOGE) is trading around $0.09615 with a staggering market capitalization of $14.79 billion, according to CoinMarketCap. The daily trading volume currently revolves around $2.44 billion after jumping about 146%.
Dogecoin ($DOGE) Rally Might Stall Due to Consolidation
Despite the current price movement, Dogecoin is currently trading below the MA25, where the price pattern is creating a consistent pattern of lower highs. Each time the token tries to rally, it fails to break above that moving average due to a lack of strength. After the memecoin got stuck in the consolidation phase, the current pattern suggests that buyers are not showing confidence in the memecoin after previous failed rallies.
Because the price trades under the MA25 and keeps getting rejected from here, sellers are still in control. It clearly means that any rallies in Dogecoin are likely to face short-term corrections.
According to the current price chart, there is a suggested entry zone between $0.09172 and $0.09230. The downside targets are $0.09043, then $0.08800, and finally $0.08500.
Short liquidation has sparked a bullish momentum because traders who have traded their position against Bitcoin faced forced buying to close positions. Institutional investors have added fresh demand through steady purchases on major exchanges. A similar bounce was also witnessed in other altcoins, such as Ethereum.
Dogecoin is currently gaining momentum upside because investors choose memecoins during the bullish sentiment in the crypto market. The price chart of Dogecoin is showing a symmetrical triangle pattern forming over recent weeks.
In this setup, the upper and lower trend lines are slowly converging, and the price bounces between them until a breakout takes place. $DOGE has also printed a series of higher lows, which shows that buyers step in at progressively better levels.
According to TradingView, the current state of $DOGE is confirming the current bullish momentum in the memecoin. The 14-day Relative Strength Index is currently revolving around 62, which is showing a strong buying momentum without hitting the overbought zone above 70.
Not just this, the 50-day moving average sits below the current price. It generally means that the medium-term direction still supports buyers.
There is a major resistance level at around $0.10, which will work as the next major test because a move above it could unlock faster upside.
On April 14, Bitcoin ($BTC) soared above $75,000 and is currently trading at around $75,441.26 with a 4.87% surge in the last 24 hours. The cumulative market capitalization of the entire crypto market has soared to around $2.55 trillion, with a spike of 4.33%. Spot Bitcoin exchange-traded funds (ETFs) have also witnessed steady inflows in the last few days.