Dogecoin (DOGE), the popular meme coin, has recently shown a significant price increase, gaining approximately 12% to its value. The uptick in its value pushed the coin to a price level of $0.068, sparking interest in the cryptocurrency community.
The short-term bull run did not go unnoticed by Billy Markus, co-founder of Dogecoin. He reacted to the price surge with a succinct yet affirmative "Nice." However, despite the rapid price increase and positive reactions from the coin's co-founder, a large portion of the crypto trading community appears to be nonchalant about the upward trend.
The lack of widespread reaction could be due to various factors, such as market volatility or the unpredictability of meme coin movements.
From a technical analysis standpoint, Dogecoin is showing signs of struggle to break through a significant resistance level. Despite the bullish activity, DOGE has yet to convincingly breach the 50 Exponential Moving Average (EMA) resistance level. This resistance has been tested at least three times, with the price forming substantial wicks above it. However, each of these attempts has not held, with the price retreating back below the 50 EMA level.
The 50 EMA is a commonly used technical analysis tool that creates an average of a coin's price over the last 50 periods, providing traders with insight into potential support and resistance levels. A coin trading above the 50 EMA is typically seen as bullish, whereas a coin trading below is viewed as bearish.
Although Dogecoin's price rise is noteworthy, the inability to break and hold above the 50 EMA suggests a level of market hesitation. Traders may be cautious due to the coin's poor performance in the last few months and the high probability of a market correction following a solid run in June.