Dogecoin (DOGE) Weekly Price Analysis: Resistance and Support Levels

In the past week, Dogecoin (DOGE) has shown strong buying pressure rising to 27%. However, when looking at the 1-day chart, we see possible resistance

DOGE Surges by 27% in a Week, Hitting Resistance Levels

Dogecoin (CRYPTO: DOGE) showed strong buying pressure in the past week with a rise of 27%. However, upon examining the 1-day chart, we observe possible resistance, suggesting that the rally might cause a short-term reversal.

DOGE is currently trading at $0.19216, which is 2.19% lower than the 1-day high of $0.20435.

On the 1-day chart, we can observe that DOGE is trading at a price that is considered to be bearish if the price retreated from the upper Bollinger Band at $0.19082. This indicates that the continuing bullish momentum may be weakening, with traders possibly taking profits at this price level.

The Simple Moving Average 20 (SMA) is at $0.15595, which presents a strong support level that can be used to halt DOGE if the pullback continues.

Any pullback in this SMA would not be viewed as a bearish signal but as a likely correction of an ongoing bullish trend. However, for the short-term bullish outlook to remain intact, DOGE has to sustain above this 20-day SMA.

Bollinger Bands Indicate Heightened Volatility and Potential Resistance

Examining the Bollinger Bands on the daily chart, we notice that DOGE has been experiencing high volatility recently. DOGE rose above the upper Bollinger Band at $0.19082 to indicate higher buying pressure.

However, the quick pullback from this level suggests that DOGE may face difficulty in sustaining the bull run because the price crossed the upper Bollinger Band, which is usually followed by a peak in the near-term buying pressure.

RSI Indicates Overbought Conditions, Signaling Possible Correction

The Relative Strength Index (RSI) on the daily chart is currently at 71.83, which is past the overbought zone at 70.

An RSI above 70 usually indicates overbought levels, suggesting a short-term bear reversal in price could occur as traders take profit. If the RSI falls below 70, this would further confirm a dip in bullish pressure and could indicate a retracement phase.

For long-term bullish momentum, the RSI should consolidate around 60-70 levels rather than staying in the overbought territory.

What Experts Are Saying About DOGE

Dogecoin has recently attracted a lot of attention, with varying opinions from market analysts. According to analyst Ali, with a break through its key resistance levels, Dogecoin may hit a new high and even soar higher.

He goes on to perform a long-term price analysis, suggesting that if Dogecoin follows major patterns of the previous bull cycle after crossing the 0.50 Fibonacci retracement level, its long-term price can range from $4 to $23. He also mentioned that the current high-profile endorsement may have contributed to the price of Dogecoin.

However, other analysts are beginning to sound their alarms, warning investors who may be overdosing their investment portfolios with Dogecoin, which could pose great risks in case of a price reversal.

Given the volatile nature of the cryptocurrency market, these analysts caution that Dogecoin's recent gains could be short-lived, especially if profit-taking increases around the current resistance levels.