Dogecoin Tests 100-Week SMA, Hints at Potential Breakout

Dogecoin (DOGE) has once again interacted with its crucial 100-week simple moving average (SMA), a level historically associated with significant price rallies. This interaction, coupled with a recent 6.1% surge in the last 24 hours (from $0.1539 to $0.1723), has traders closely watching for a potential repeat of past performance.

Historical data shows that previous touches of the 100-week SMA, notably in late 2017 and early 2020, preceded substantial price increases. The current interaction in 2024 is fueling speculation of a similar upward trend. The chart clearly illustrates these past instances of price appreciation following interactions with the 100-week SMA. Currently, DOGE maintains a price of approximately $0.1703.

Technical Indicators Suggest Short-Term Bearish Pressure

While the price action is encouraging, technical indicators paint a more nuanced picture. The Relative Strength Index (RSI) currently sits at 33.36, approaching oversold territory. This suggests potential selling pressure, although it also indicates a possible price reversal or relief rally could be imminent.

Conversely, the Moving Average Convergence Divergence (MACD) indicator shows negative momentum, with the MACD line trading below its signal line. This negative trend reflects low demand and suggests Dogecoin remains in a short-term correction phase.

In summary, while the historical significance of the 100-week SMA interaction offers bullish potential, short-term indicators like the RSI and MACD currently point towards bearish pressure. A sustained increase in buying pressure and stabilization of the RSI would likely be necessary to trigger a significant price rise towards resistance levels.

Source: (X), TradingView

Tags: Crypto market, cryptocurrency, Doge, Dogecoin