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Dogecoin price declined by more than 5% in the previous 24 hours, trading at close to $0.222 as of the report. Even in the declining trend, some technical pointers indicate that the price might recover soon. The TD Sequential indicator has recently produced a buy signal on the 1-hour timeframe, which is considered by some of the stock market players as a possible indication of the rebound.
This indicator usually accompanies an extended sell-off and typically signals the end of the trend. This time, a nine candle appeared after the formation of a sequence of red candles, and with an up arrow. These patterns are common before small price changes, particularly when consolidation is taking place.
Dogecoin (DOGE) is trading within a small range on a daily chart and below the $0.25 resistance. The chart patterns described by different technical analysts, such as Trader Tardigrade, indicate that an ascending triangle has been formed. This trend has also been followed by breakouts within market movements in the past.
The present trending triangle implies price compression within the triangle. The price is around the upper boundary of the triangle, near the zone of resistance around the $0.25 level. Analysts often watch a more significant volume breakout above this level, which could spark a bullish extension.
DOGE has also had fantastic bullish trends as it escapes triangular patterns like the one in the analysis. However, the market can remain in the range for longer than anticipated without a break to break the resistance levels.
The Relative Strength Index (RSI) now stands at 49.72, indicating neutrality in Dogecoin. Price readings less than 50 indicate selling pressure, but the reading is near balance. The RSI signal line, with a value of 53.68, also indicates no strong direction in the trend presently.
The neutral outlook is also confirmed by the MACD (Moving Average Convergence Divergence) indicator. The MACD line is at 0.00430, slightly below the signal line at 0.00458, and the histograms contain -0.00028. The values indicate poor momentum and a lack of directional bias in the short run. The RSI and MACD show weak values in either direction, which can leave traders waiting until a more decisive breakout.
Also Read: Dogecoin News Today: DOGE Gains 8% on ETF Optimism, Hits Key Resistance Level
