Despite the fact that this action gives investors some hope, DOGE still has a long way to go before it can be regarded as returning to bullish trading.
Dogecoin (CRYPTO: DOGE) prices rose by 12% on Wednesday.
What Happened: Meme coin Dogecoin recovered some ground following its most recent decline, offering some hope to investors. However, there is still a long way to go before DOGE can be said to be returning to bullish trading.
The first major level of resistance for the meme coin is still at a 25% premium, which is still not enough to confirm a strong trend reversal.
Relative Strength Index (RSI) for the 14-period on the 4-hour chart: RSI showed signs of oversold conditions, usually defined as below 30, on Wednesday, after bouncing back from the oversold territory. It had since moved into the neutral zone, which ranges from 30 to 70.
Benzinga's Take: Despite the recent recovery, it might be premature to fully commit to Dogecoin just yet. Another pullback remains a possibility if there is a lack of sustained volume and strength.
This rebound could be viewed as a near-term relief rally, rather than the beginning of a long-term uptrend, until Dogecoin manages to reach higher levels in a more sustainable manner.
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