Dogecoin price has sustained a positive outlook for over a week now — in tandem with Bitcoin and most altcoins. Traders have been turning to tokens such as meme coins which can easily return double-digit gains like DOGE. After rallying 6% in the last 24 hours, Dogecoin price is trading at $0.064.
The remarkable uptrend from support at $0.0574 is mainly backed by a significant increase in trading volume to $593 million in addition to other bull market indicators like the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI). “$Doge is a meme coin w/beautiful chart structure, huge opportunity for next cycle!” Analyst and trader wrote on X (Twitter).
#Dogecoin – Bounced off the yellow trendline & the 0.786 fib on the log scale! Printing Potential Bullish Divergence on both RSI and SRSI.. 😱😵$Doge is a memecoin w/beautiful chart structure, huge opportunity for next cycle! Yet many will get REKT again buying the hype again🤦♂️… pic.twitter.com/usEHyEsWeQ
— JD 🇵🇭 (@jaydee_757) October 23, 2023
Assessing Dogecoin Price Double-Bottom Pattern Breakout
Interest in Dogecoin started after a longstanding downtrend from highs seen last in April at $0.1 faded with support at $0.0574 and the fake news of the approval of a Bitcoin spot ETF approval by the Securities and Exchange Commission (SEC) early last week.
Speculation regarding the approval of multiple BTC ETFs has rocked the market since BlackRock filed to operate the product in June. Crypto enthusiasts believe that the approval of spot BTC ETFs will trigger a Bitcoin price rally and subsequently fuel the next bull run.
Improving investor interest has also continued to prop Dogecoin and other tokens for substantial price movements, especially now that it is sitting above two key moving averages; the 21-day Exponential Moving Average (EMA) (red) and the 100-day EMA (blue).
Exposure to Dogecoin longs should ideally continue as long as the MACD upholds the call to buy the meme coin. Such a buy signal manifests with the MACD line in blue flipping above the signal line in red.
The RSI, with a strength of 65 confirms the bullish grip which significantly increases the chances of an incoming double-bottom pattern breakout.
As a reversal pattern, the double-bottom forms toward the end of a downtrend. Two troughs reinforce the support which is tested twice, followed by a rebound.
In Dogecoin’s case, the ongoing uptrend is a result of the double-bottom support at $0.0574 tested in June and October. A break above the neckline resistance will complete the pattern ahead of a sharp upswing of approximately 38.85% to $0.1.
The breakout target is calculated by measuring the height of the pattern extrapolated above the neckline resistance.
Some of the milestones traders should be looking out for would be a daily close above the immediate 100-day EMA support, a break above the 200-day EMA resistance, and consequently the neckline hurdle.
On the other side of the fence, investors may prefer to close their positions if traders book profits. Declines below the 100-day EMA support at $0.0642 could trim the chances of a rally making it to $0.1 while selling pressure intensifies losses to $0.06 and the double-bottom support at $0.0574.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
