Dogecoin Price Movement Analysis for 20th April, 2021

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Dogecoin’s price has risen over the last week and has been able to continue a steady upward trajectory. However, recent trading sessions have shown that the unrestricted uptrend is now in touch with a central resistance stage, and DOGE’s bullish momentum could be hampered in the short term.

DOGE was priced at $0.40 at the time of publication, with a market capitalisation of more than $53 billion. In the last seven days, the coin’s price has increased by more than 460 percent, with a 24-hour trading rate of $34 billion.

Dogecoin 4-hour chart 

Dogecoin’s market action has been very promising over the last week, and this momentum has accelerated in the last 24 hours. However, despite reaching the $0.40 price mark, the coin has encountered incredibly high resistance around $0.45. Earlier in the day, the coin failed to break through this resistance, and if this occurs, a small reversal may occur, bringing the price closer to the $0.34 support.

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The next level of funding for Dogecoin is about $0.26; however, considering the present trading situation, even a dramatic drop is unlikely in the near term. To keep the DOGE uptrend going, immediate resistance must be met in the next 12 hours, otherwise traders may expect a minor price reversal.

Rationale

At the moment, technical metrics for Dogecoin seem to be promising. They are, however, showing signs of a pattern turnaround in the short term. The RSI indicator is currently in the oversold sector, but considering how Dogecoin’s market has done in the past, the RSI may quickly begin to trend towards neutral. In this case, the price can experience a slight dip or begin trading sideways.

The MACD indicator saw a positive convergence, with the MACD line remaining above the signal line; however, a turnaround seems imminent as the signal line begins to inch down to the MACD line – signalling that short-term bearishness is creeping into the sector.

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Conclusion 

Dogecoin’s price has risen dramatically in the last week, and the coin can continue to rise if it can conquer its immediate resistance. However, if this break does not occur in the next few days, the coin could suffer short-term losses, bringing it closer to the $0.34 price point.

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