While most of the alts saw strong gains as a BTC rebound, Dogecoin appeared to be slipping into a doldrums. The price has been moving sideways for a week and a half with slight gains of 3%. While market watchers and Dogecoin enthusiasts are waiting for the next rally, the indicators point to a favorable result in the coming days. At the time of writing, Dogecoin was trading at $ 0.249, up 0.09% over the past 24 hours.
Dogecoin daily chart
DOGE’s sideways movement lasted for the ninth straight day as the balance between buyers and sellers remained intact. The daily 20-SMA (red) has acted as a resistance line during this period, denying a bullish breakout. However, the uptrend on June 22nd and the subsequent sideways movement resulted in the formation of an ascending triangle.
A close above the upper trendline, hovered around the $ 0.280 level, would likely trigger the next DOGE rally. Such an outcome could cause prices to rise towards the $ 0.326 level – an area that coincides with the 50 daily SMA (yellow). Additionally, a successful move above $ 0.326 would put buyers back in the driver’s seat from where a longer rally would be possible.
DOGE’s indicators reflected a balanced market, but there were some positive aspects. Although the MACD line almost overlaid the signal line, its histogram indicated that the bulls had the top. The Squeeze Momentum Indicator highlighted the easing downside momentum as buyers prepared to kick off the next upswing. On the flip side, the Directional Movement Index was still seeing bearish conditions as -DI stayed above + DI. An ADX reading of 22 indicated that the market was not yet pointing the way to register any sharp moves.
While the consolidation phase continues, it is important for the bulls to keep prices above their 19th century swing lows.
Dogecoin should continue to move sideways for at least a couple of days before the volatility in the market increases. The indicators paved the way for a breakout to the upside – one that could push prices towards $ 0.326. However, traders need to be careful as a move below $ 0.215 could run the risk of DOGE losing its bullish structure.
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