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Dog-themed cryptocurrency Dogecoin's (DOGE) price has seen a rebound following five days of consecutive falls since the weekend.
At the time of writing, DOGE was up 5% in the last 24 hours to $0.17, continuing its recovery from yesterday's session, when it hit support at $0.1427.
Wednesday's price movement reached highs of $0.169 as of press time, with Dogecoin bulls hoping to extend the rally.
Several variables could have contributed to DOGE’s sudden upward move. The larger crypto market is rebounding from a long losing streak this week, with Bitcoin and Ethereum back in the green. Cryptocurrencies were driven down alongside risky assets in a broader market sell-off fueled by macroeconomic concerns. Bitcoin rebounded from a four-month low as traders snapped up cryptocurrencies affected by the recent sell-off in risk assets.
Arman ShirinyanThe renewed sentiment on the market is benefitting Dogecoin, which might see its second day of gains if today concludes in the green.
Dogecoin price action
While the 5% increase is encouraging, DOGE still faces resistance at key levels. If the momentum continues, it could aim for further gains with the next resistance around $0.21.
Tomiwabold OlajideA break and close above $0.21 will be the first indication that the selling pressure is easing. Dogecoin might ascend next to the 50-day SMA at $0.26, which may serve as a strong resistance.
On March 9, Dogecoin went below the $0.18 support level, indicating the resumption of the downtrend. On the other hand, if selling pressure returns, DOGE may pull down to test lower support levels.
The downward-sloping moving averages and the RSI in negative territory indicate that bears have the upper hand. If the downturn continues, Dogecoin might retest support at $0.14. For the time being, Dogecoin's recovery provides renewed hope, but whether it can maintain the rebound is dependent on broader market conditions and continued investor interest.
Dan Burgin
Vladislav Sopov