Dogecoin: Will the $0.17 Breakout Lead to a Bullish Rally?

• Dogecoin is down 4.14% but gained 3.68% over the past week with a trading volume of $1.1 billion.
• Key resistance levels for Dogecoin are $0.17 and $0.20. Traders should set a stop loss at $0.155.
• RSI at 46.14 suggests Dogecoin is neither overbought nor oversold, indicating potential for both moves.

As of press time, Dogecoin is trading at 0.166, with a 24-hour decline of 4.14%. The 24-hour trading volume stands at $1.1 billion, representing a 27.18% decline. Dogecoin has gained 3.68% in the past 7 days.

Source: CoinMarketCap

CoinCodeCap Trading highlighted that Dogecoin overcame the resistance of $0.17 in recent times. This breakout has created a bit of hope in the market. As long as Dogecoin stays above the $0.17 mark, the next potential may be the $0.20 mark, which is a 15% upside. Traders should set a stop loss at $0.155 to take less risk because the market is rather uncertain.

Source: X

Dogecoin’s Breakout and Risk

Major resistance levels will be $0.15 and $0.14. These levels are crucial in determining whether the price will rebound or decline. At $0.17 and $0.20, the resistance is maintained. A failure by Dogecoin to overcome these levels may indicate an additional downtrend in the short term.

Emilio Crypto Bojan revealed that Dogecoin is coming to life after ending its downtrend. Yet he warns that the larger bearish trend is still looming. This rally surpassing the $0.17 mark might suggest a temporary shift in direction, but there is still no clear indication of what happens in the long term.

Source: X

MACD Indicates Bearish Pressure

Relative Strength Index (RSI) stands at 46.14, slightly above the neutral point of 40.08. Anything above 50 would indicate a possible bullish energy, whereas a drop below 40 might indicate that there is still more pressure to sell. The traders ought to be keen on any changes in the RSI.

The Moving Average Convergence Divergence (MACD) is more prudent. The MACD line shows the value at 0.00204 with a signal line at -0.00522. The bearish movement is signalled by the negative divergence of these two lines. The MACD histogram, which is -0.00726, also indicates the existence of negative momentum. These signs spell that bears are dominant at least temporarily.

Source: TradingView

Dogecoin has an ambiguous position of RSI and MACD. A short-term reversal can still be seen, but the longer-term trend remains bearish. Investors need to closely monitor significant technical levels to detect changes in direction.