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Dogecoin (DOGE) price trades above $0.08 with a bullish bias, as mild recovery is witnessed in the wider crypto market. The meme coin is up 11.75% over the past 24 hours and has risen to eighth position with a market capitalization of $10.86 billion. Recovery for DOGE appears possible with today’s second straight session in green becoming the clearest sign of bullishness.
If the recovery is sustained, Dogecoin could display a significant climb.
Dogecoin Price Bulls Need To Hold Above $0.08
DOGE has been suppressed by the descending trendline over the past two weeks, turning away from the November 10 recovery attempt. The ensuing drawback saw the altcoin lose the crucial support provided by the 50-day Simple Moving Average (SMA) which sat at $0.0803.
However, the $0.072 level provided the launchpad required to kickstart a recovery on Tuesday. Note that this is a significant demand zone that is embraced by both the 100-day and 200-day SMAs.
At the time of writing, DOGE is exchanging hands at $0.0817 and appears to be fighting to hold above the 50-day SMA currently sitting at $0.080. The crypto would require support from the wider market to hold above this level in order to avoid further losses.
Unfortunately, the Relative Strength Index (RSI) is still positioned below the midline at 44.5, a suggestion that the bears still have the upper hand. In addition, the Moving Average Convergence Divergence (MACD) indicator is still moving within the negative region below the zero line. This is an indication that the market sentiment is still negative.
DOGE/USD Daily Chart
As such, the bears will now attempt to pull the price below the 50-day SMA at $0.080 with the first line of defense emerging from the 100-day and 200-day SMAs at $0.072. The next support line would be found at the $0.067 level.
Below that, DOGE could drop into the crucial demand zone stretching from $0.056 to $0.067, where it could accumulate for some time before staging a comeback.
Investors can recall that the crypto oscillated within the range between late August and late October before rallying 168% on the news that American billionaire and Tesla CEO Elon Musk had officially acquired the social media giant, Twitter.
Therefore, if the Dogecoin price drops to the aforementioned zone, a similar price movement could be seen, given the kind of support provided at this level.
The $0.056 To $0.067 Demand Zone Is Crucial To DOGE Price
The $0.056 to $0.067 is crucial for the Musk-backed meme token, according to on-chain data from IntoTheBlock. Its Global In/Out of the Money (GIOM) model shows that the zone is within the $0.055 and $0.0678 price range where about 4.4 billion DOGE were previously bought by 345,230 addresses.
Any attempts to push the price below this level would be met by intense demand from this cohort of investors who may wish to increase their profits.
Dogecoin GIOM Chart
This support is relatively stronger when compared to the immediate resistance around the $0,085 level. This is within the $0.084 and $0.11 price range where 17.53 billion DOGE were being held by only about 170,000 addresses.
The Flipside
On the upside, DOGE could continue to turn up from the current levels to breach the descending trendline to tag the $0.085 psychological level. If this happens, the bulls may be bolstered to push the price to the $0.090 supply level before making a run for the $0,095 range high. Such a move would represent a 15.6% climb from the current price.
Another crypto with an optimistic outlook is the IMPT token, whose presale is ongoing. The token has so far garnered $13.5 million in the presale. As a bonus, the Impact Token team is running a giveaway promo of 100K. Hurry up and take part in this giveaway so that you don’t miss out on an exciting opportunity.
Similarly, Dash 2 Trade comes in as well among these promising tokens. This platform enables the creation and testing of trading strategies for traders and investors to make informed market decisions. Dash 2 Trade is designed to take your crypto trading to the next level by providing data-based crypto signals.
With a trading intelligence platform like Dash, looming disasters like the collapse of FTX can be spotted before they occur and help traders and investors to secure their assets and make market-beating returns. Right now, the D2T presale is on and it has raised close to $7 million.
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