There is a major support level for Dogecoin, the eighth-largest cryptocurrency in terms of market cap, that could indicate the start of a new uptrend. Marked by 13.53 billion DOGE, this supportive level is crucial. In fact, quite a number of addresses are located in the $0.154–$0.1673 price range, with an average value of $0.1617, showing that many people have faith in Dogecoin’s future within this range.
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I’ve been observing one such indicator, the Simple Moving Average (SMA) 50, on the daily chart as it tracks closely alongside DogeCoin prices over time.” The SMA 50 currently stands at around $0.154.The recent rise above this barrier by Dogecoin for the first time since mid-April has not been without significance; it indicates that buyers have stepped up their game and driven up the price even as sellers attempted to push it back down again. Low and behold, Dogecoin broke through this barrier and has managed to stay above it despite being forced down on many occasions by bears, which is perhaps a boon for its proponents.
What I find really interesting is how this level of support can lead to a major price rally. Previously, each time Dogecoin retained its position above such important marks as SMA 50, it meant that investors regained faith in it and began buying higher. The same events occurred in the past when Dogecoin experienced a surge in price from February to March and then from October through December last year. During this period, prices went up because they held onto such critical levels.
Dogecoin is close to the daily SMA 50 at the moment after falling for about a week. This matters so much because if it does not fall below this point again, it could imply a new upward motion. If bulls are able to hold on to their gains and make use of more volumes, we may expect the cost to go up significantly. Therefore, this makes me keep my eyes on this support line.
At present, DogeCoin is trading around $0.16, having declined by about 0.80% within the last day’s period. This shouldn’t worry you too much since there are always small changes in cryptocurrencies’ market values. What matters most is that it remains somewhere near SMA 50. Should Dogecoin maintain its values above this area while gaining impetus, there are chances that it may break through other resistance points upward.
How the market dynamics unfold is what particularly fascinates me. There is a clear struggle between the bulls and bears; however, the fact that buyers are stepping in to buy the dips shows strong support. This type of buying often signals significant upward moves. In my opinion, should this trend continue and Dogecoin maintain or sustain above SMA 50, this could result in a strong uptrend.
That makes Dogecoin an enchanting asset to follow at present. The level of support around $0.154 to $0.1673 is not just a technical level but also a psychological one too. Many investors have taken positions within this range and are likely to back or support them, thus keeping them from falling below this point. This level provides a solid base for possible growth.
Posted Using InLeo Alpha