Key Factors Supporting Dogecoin (DOGE) Recovery and Momentum

Dogecoin (DOGE): Recovery Momentum and Key Factors

Dogecoin (DOGE), the trailblazing meme coin, traded near $0.105 at the time of writing. Its market capitalization grew by 3.1% in the past 24 hours, offering promising news for Dogecoin holders. It ranked eighth among cryptocurrencies, boasting a market cap of $15.44 billion.

DOGE has rebounded from its lows and surpassed the 20-day Exponential Moving Average (EMA) daily. This serves as an early signal of recovery. However, the bulls need to maintain this pace until the price surpasses the 200-day EMA, increasing the likelihood of a bullish reversal.

On-Chain Metrics: DOGE's Outlook

Using on-chain metrics, we can gauge the performance of Dogecoin in the near future. This assessment will provide insights into whether DOGE investors can anticipate profits or losses.

Price DAA Divergence Indicator

This indicator monitors the influence of buyers and sellers in a crypto asset. For Dogecoin, the DAA surged from bearish territory towards the zero line at press time, indicating a recovery in price and fading bear influence.

However, despite this shift, the price DAA remained in bearish territory, suggesting that sellers still control the trend, which may limit the momentum's strength. A sustained rally will depend on the price DAA crossing above the zero line and entering bullish territory.

Weighted Sentiment Curve

This metric measures the emotional sentiment towards a cryptocurrency. For DOGE, the weighted sentiment has shifted from bearish to bullish, reflecting improved sentiment for the meme coin leader.

Price Prediction: September Outlook

Dogecoin's price has fluctuated between $0.092 and $0.115. Recent sessions have witnessed significant buying from lower levels, pushing DOGE towards its upper range.

To sustain upward momentum, DOGE must break through the local supply zone. It is plausible that DOGE will transform the $0.115 resistance into support and ascend further. Technical indicators support this bullish continuation.

The RSI and SMA lines indicate a bullish crossover, corroborating the current bullish trend. Moreover, on-chain metrics are continually improving alongside the price recovery.

If Dogecoin successfully transforms $0.115 into support, it could pave the way for a 25% gain to $0.14. Conversely, failure to surpass the supply may invite more sellers and potentially lead to a price drop. Traders and investors should closely monitor the price action.