Dogecoin needs no introduction, and any cryptic enthusiast must have heard about its phenomenal run in 2021. Considering October 2020, this cryptocurrency has been up by more than 200% in the last year. While many have become millionaires investing in this meme cryptocurrency, others still hope for a similar run. Whether or not Dogecoin will make current investors is a different question, but the fact that DOGE is among the top 10 largest cryptocurrencies by market capitalization is a reality.
DOGE has a current market capitalization of close to USD 33.6 billion and holds the 9th position in terms of market cap. This digital asset has mostly remained silent the entire year, with sudden breakouts and trends in between. These sudden uptrend moves of over 100% have been considered a primary reason people invest in Dogecoin.
Fundamentally it doesn’t offer much value as compared to many recently launched crypto projects. Still, Bitcoin being the first meme-based cryptocurrency and frequent tweets of prominent personalities on social media have created an irreversible trend and excitement for this digital asset.
Dogecoin Price Eyes Breakout
Dogecoin price faces difficulty in crossing its critical level of 200 DMA once it breaches the same. Taking multiple attempts resulted in decreasing volumes, but so far, DOGE has consistently breached its 200 DMA resistance and become trending.
DOGE was falling since 7th September profit booking resulting in loss of above 18% of its value as per the Dogecoin news. The subsequent negative trend brought DOGE from a peak of $0.3502 to $0.200 levels, which was heartbreaking for investors at a higher price point. The fall resulted in wiping 44% of its valuation in less than a few weeks. Subsequently, $0.200 has been working as a strong support level since August 2021.
As a result of taking support from the $0.200 level, DOGE has jumped close to 35% only to face rejection at 200 DMA. As before, crossing this support turned resistance, moving the average level will be pretty tough for Dogecoin. After failing on 6th October, DOGE is making yet another attempt to realize this level today on 18th October. Despite the higher movement, DOGE carries a more significant probability of being suppressed by profit booking.
RSI level currently has taken a sharp upside movement and is clocking 63 on its histogram charts. MACD, on the other hand, is also supporting this bullish movement by converting its almost bearish crossover into a prolonger positive axis divergence. Apart from moving averages, the critical aspect is the candle patterns in the last week.
Since 12th October, daily candles indicated no confidence since they had wicks on both positive and negative sides. After six days of tug between buyers and sellers, the buyers took DOGE close to the 200 DMA. The real battle would be closing above the 200 DMA, after which we can expect this sharp rally to continue.
