Dogecoin (DOGE) price is showing signs of bullish momentum as recent technical indicators point to a potential upside. The Ichimoku cloud, EMA line, and DMI all suggest positive movement, but the strength of the trend is still unclear.
Buyers are in control, but momentum needs to pick up to confirm a solid uptrend. Traders should keep an eye on key support and resistance levels to indicate where DOGE price will head next.
DOGE Ichimoku cloud indicates bullish setup
The Ichimoku cloud on the 4-hour chart indicates bullish sentiment, with DOGE trading above the green cloud. This suggests strong buyer control and positive momentum.
Current cloud thickness provides a solid support level, suggesting that any downside correction may be limited unless bearish pressure increases significantly.
Read more: Dogecoin (DOGE) and Shiba Inu (SHIB): What’s the difference?
DOGE Ichimoku cloud. Source: TradingView
Recently, the Tengguan line (red line) broke above the reference line (blue line), indicating short-term strength and the possibility of a continuation of the uptrend.
Furthermore, the Diguchi Span (green line) is located well above the price curve, further supporting the bullish outlook. To maintain this positive trend, price must stay above the cloud while Kumo remains green.
Dogecoin’s current trend is not very strong yet
Dogecoin’s Directional Movement Index (DMI) chart shows mixed signals regarding the strength of the current trend. The yellow line represents the average directional index (ADX), which measures the strength of the trend.
ADX is currently below 20, indicating that there is no strong trend at the moment. Low ADX values usually mean the market is volatile or lacks a clear direction.
Doge DMI. Source: TradingView
The blue line (+DI) and red line (-DI) represent buying pressure and selling pressure, respectively. +DI is slightly higher than -DI, indicating that buyers have a slight advantage over sellers. However, the fact that both lines are relatively close indicates that the buying momentum is not overwhelmingly strong.
To get a stronger signal, the interval between +DI and -DI should be wider, and the ADX value will increase accordingly. This confirms a solid trend direction for DOGE.
DOGE Price Prediction: Highest price since April?
The EMA line on the 4-hour chart of Dogecoin price suggests a mixed trend with some bullish signs. Price is located above all EMA lines. This placement generally indicates that short-term to long-term momentum is in favor of the bulls, suggesting an upside move.
Immediate support lies around the $0.11996 and $0.10858 levels, as indicated by the red line. These levels previously served as strong zones for buyer intervention.
Read more: Dogecoin (DOGE) Price Prediction 2024/2025/2030
DOGE EMA line and support and resistance. Source: TradingView
On the upside, the key resistance levels are $0.17526 and $0.20355, highlighted by the blue line. If the uptrend continues and DOGE can rise to $0.175, this would potentially mean a 20% price increase. A rise to $0.20355 would be DOGE’s highest level since April.
A breakout of these resistance levels would likely signal a continuation of the bullish trend, while a failure could lead to a pullback that tests the support zone.
Disclaimer
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