Dogecoin (DOGE) has shown initial signs of stabilizing after a recent dip in the market, indicating a possible change in its short-term trend. The cryptocurrency has shown a base-building pattern as it has started to accumulate after a decline.
At press time, DOGE is trading at $0.09115, with a 24-hour trading volume of $2.18 billion and a market capitalization of $15.46 billion, according to CoinMarketCap. The DOGE has gained 2.86% over the last 24 hours, signaling early signs of recovery after recent price drops.
Source: CoinMarketCap
Crypto analyst, Alpha Crypto Signal, noted that a potential rounding bottom formation for the price of DOGE on shorter timeframes has been observed. The rounding bottom pattern normally indicates a sign of diminishing bearish pressure.
Source: X
Alpha Crypto Signal highlighted that the DOGE asset has been gradually moving upwards while creating higher lows.
“If Dogecoin is able to sustain this structure, moving past the nearby resistance could be a sign of a bullish move,” Alpha Crypto Signal said. “Dogecoin is sustaining its support, keeping its short-term outlook slightly biased to the upside.”
Although it has shown positive movements in recent times, technical analysis shows that DOGE still has a lot to do before it makes a full turnaround in terms of price. As of now, the Relative Strength Index (RSI) is at 43.58, just above the average of 42.80. This shows that there is still not enough buying activity in the market.
Source: TradingView
As the price of DOGE is still trading below the 20-day MA ($0.09449), the 50-day MA ($0.10317), the 100-day MA ($0.11988), and the 200-day MA ($0.16419), the overall trend for the cryptocurrency is still bearish. The MACD indicator is still in the negative region, and the MACD line at -0.00353 is still slightly higher than the signal line at -0.00377.
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Dogecoin’s short-term outlook will depend on its ability to hold its support levels and slowly move up past its resistance levels. The cryptocurrency’s chances of moving up will be determined by its ability to continue forming higher lows.
At the moment, DOGE is in a phase of cautious accumulation, giving it space to recover in the future as long as the overall crypto market is in a state of uncertainty.
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