(DAILY NOTION): DOGE/USD: Are the Dogecoin Bulls Back?

Source: Yahoo Finance

After experiencing a downward spiral early this week, DOGE/USD appears to be picking up and presently stands at $0.0497. It is trading above both its 10-day and 50-day Simple Moving Average (SMA) and has been doing so since the early trading hours today.

Meanwhile, the Relative Strength Index is at 81, and the overbought condition reflects a prevailing appetite for Dogecoin in the market. At the time of writing, the Moving Average Convergence Divergence (MACD) is indicating a bullish reversal.

However, the cause of the bulls can only be confirmed if they overcome key resistances that stand in their way. According to analyst Anil Panchal from FX Street, the next resistance is at 0.0555, which is a two-week-old resistance line, before the next hurdles at 0.0660 and 0.0880.

Meanwhile, if the bears fight back to attack a support level of 0.0447, representing the downside break of 200-bar SMA, it could strengthen a downward track towards the following support levels at 0.0300 and 0.0220, which is the swing lows from late-January.

Dogecoin, the cryptocurrency that is associated with an internet meme featuring a Shiba Inu dog, has captured its share of the limelight as of late. In early February, it surged past 0.075 to record an all-time high as it garnered the attention of popular figures which includes artistes Snoop Dogg and Gene Simmons, as well as Tesla’s Chief Executive Officer (CEO) Elon Musk.

On Feb 21, Forbes reported that about 28% of all the dogecoin tokens in circulation is controlled by an anonymous person or persons, according to Dogecoin blockchain data. This amounts to approximately $2 billion then.

The remaining question is if the Doge bulls are here to stay. As of the time of writing, DOGE/USD is down 8.46% in the past seven days, as per data from Coin Market Cap. But, as cryptocurrencies and Bitcoin, in particular, continue to gain popularity following uncertainties in a pandemic-stricken economy, the Doge bulls could very well ride this wave and stamp their mark.

But that, of course, remains to be seen so let’s watch if the bulls can overcome the key resistances in their way for now.

DOGE/USD (as of Feb 24, 2021, 10.10 a.m., GMT +8) - $0.0497