Dogecoin Price Movement Analysis for 2nd September, 2021

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Buyers had been looking for a critical price level since August 22nd, and they have now been rewarded for their perseverance. For the first time in over a week, three straight green candles lined up on Dogecoin’s daily chart when buyers stepped in between $0.270-$0.280.

A break over the weekly 20-SMA would instil more bullish enthusiasm, from which certain key levels would be targeted. Dogecoin was worth $0.302 at the time of writing, up 7.5 percent in the previous 24 hours.

 

Dogecoin Daily Chart

Dogecoin appeared to have gone silent after reaching a high of $0.35 on August 15th. Low volumes indicated a purchasing pause as ordinary traders sought profits elsewhere. As a result, the price fell progressively within a falling wedge formation. The price range of $0.270-$0.280 was critical for a reversal, and purchasers appeared to respond appropriately.

A break above the daily and weekly 20-SMAs (red) could have a favourable impact and stimulate additional purchasing in the future. DOGE could set its sights on $0.447 if it closes above $0.38, but certain requirements must be met beforehand.

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On the other hand, low volumes are still plaguing the market. In the event of a correction, DOGE would need to hold above its 50-SMA (yellow) $0.270 to keep short-sellers away from the market.

Reasoning 

The RSI saw a breach from its declining channel, which favoured buyers. However, the index must rise over 60 in order to post greater increases in the following days. The MACD also showed bullish movement when the fast-moving line approached the signal line.

A favourable crossover usually leads to increased purchasing activity. Meanwhile, the Directional Movement Index experienced a bullish crossover following a period of uncertainty. However, for the uptrend to strengthen, the ADX must rise over 25.

Conclusion

Dogecoin registered a much-needed rally, but the price needs to make some more headway for an extended run. Firstly, DOGE needs to topple its daily and weekly 20-SMA (red). A close above $0.330 on strong volumes would be the next crucial step.

These conditions would allow DOGE to challenge its long-term target of $0.447.

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