Despite the market’s dominant downtrend, the well-known meme-based cryptocurrency Dogecoin (DOGE) is making an effort to recover. This unanticipated upward trend occurs despite general market sentiment and conditions still being essentially negative. Traders and investors are keeping a close eye on the situation as DOGE tries to regain lost ground, trying to decipher what this possible turnaround could mean.
Several factors may be driving this recovery attempt, including market reactions to news events, changes in investor sentiment or technical indicators signaling oversold conditions. However, the question remains: can DOGE sustain this rebound and reverse the downtrend, or is this just a temporary rise before further declines?
This introduction delves into the dynamics behind DOGE’s current price action and explores what investors can expect in the near future.
At the time of writing, DOGE has a market capitalization of over $20 billion, a trading volume of over $715 million, and a price increase of 1.33%, trading around $0.14297 in the last 24 hours. DOGE’s market capitalization and trading volume suffered a decline of 0.73% and 43.92%, respectively.
Increase in DOGE analyzed
Although DOGE price is currently trading below the 100-day simple moving average (SMA), an analysis of the price movement on the 4-hour chart shows that DOGE is attempting a rally by dropping bullish candles.
![DOGE on the Move: Recovery to End 1-Day Bearish Move? 1 DOGE](https://thegurumedia.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-14-at-11.01.12-AM-1.jpeg)
Furthermore, given that the signal line of the 4-hour Composite Trend Oscillator indicator has crossed above the SMA and is moving towards the zero line, it supports the previous claim that DOGE price may increase.
On the 1-day chart, DOGE price is attempting an upward move as it develops a bullish candle while trading below the 1-day SMA. What this indicates is that the price of DOGE could rise and, at some point, start falling again.
![DOGE on the Move: Recovery to End 1-Day Bearish Move? 2 DOGE](https://thegurumedia.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-14-at-11.01.12-AM.jpeg)
The signal line and SMA of the composite trend oscillator indicator on the 1-day chart have crossed and are trying to fall below the zero line. This supports the above statement that at some point the price of DOGE may start to fall again.
Bullish or bearish trajectory?
If this rally continues, DOGE price will advance towards the $0.14911 resistance level despite DOGE’s continued bearish outlook. DOGE could rise further to challenge the $0.16490 resistance level if it surpasses the $0.14911 level. If there is a break above the previously indicated level, the crypto asset may turn bullish.
There is a tendency for DOGE price to start falling towards the $0.13580 support level if fails to surpass the $0.14911 level. The crypto asset will decline further to challenge the $0.12014 support level in case of a break below the $0.13580 level and even other levels after that.
Featured image from iStock, chart from Tradingview.com