DOGE Technical Analysis – April 2022
The price of Dogecoin (DOGE) ended 2021 in a bearish run, and it continued that same momentum in 2022 as well. The year began at a price of around $0.20, but the price had a bearish surge of more than 40%. After the price of DOGE had a correction of 44% and faced resistance at $0.17, the price continued to decline.
Dogecoin dropped as low as $0.10 in March of this year, where it managed to find support. After that, the price managed to make a decent recovery, where it increased by around 60% in the following weeks. DOGe once again faced resistance at around $0.17, failing to break a crucial structure that could have proved to be essential for reversing the long-term trend. Nonetheless, this increase moved the candlesticks above the upper Bollinger band, meaning that the price has been highly volatile recently. But, that failed to lead to a change in the momentum for DOGE.
Currently, DOGE is now trading at around $0.13 due to the recent retracement in the price. On a slightly more bullish note, DOGE has been finding support numerous times at this zone, close to $0.13. If the price goes below that, then chances for recovery are smaller in the short run. The overall price movement of the last few weeks has formed a rounding bottom. However, since DOGE failed to break resistance, the price could remain bearish. Nonetheless, another increase in the price could form a cup and handle pattern, which could be bullish.
The fear and greed index suggests that there is still fear for DOGE traders, but that applies to the rest of the market as well. All in all, the overall trend is still bearish for DOGE in the 1-day chart.
The 20-MA of a 1-day chart is currently above the price of DOGE, meaning that other things equal, the price of DOGE may keep declining in the short run. However, the 50-MA line suggests otherwise. The latter shows that the price of DOGE is relatively bullish when looking at these last couple of months.
The 9-EMA of a 1-day chart is currently above the price of DOGE, meaning that DOGE may remain bearish in the shorter run as well. The EMA line could act as a resistance structure in the coming days if the price attempts to increase.
Relative Strength Index
The RSI of a 1-day chart shows that DOGE recently went above 70 and was in the overbought region in the recent increase. This then led traders to take their profits and move the RSI into a more stable zone. Currently, the RSI is slightly below the equilibrium.
The MACD line of a 1-day chart was overall bullish recently. Nonetheless, the lines have now intersected. The MACD line is now below the signal line and moving below the baseline, suggesting that the momentum is bearish in the short run.
The Fibonacci retracement levels suggest that the price of DOGE has found support at the 61.8% level three times in the last few days. If this level is broken, then we could see DOGE continue to decline in the coming days. However, if DOGE manages to have another decent correction, then the price could as well move to one of the Fibonacci extension levels.
Price Prediction DOGE – April 2022
Based on this technical analysis of Dogecoin (DOGE), the price of DOGE could keep declining in the coming days if support at $0.13 is not strong. On the other hand, if the price has another rebound and forms a cup-and-handle pattern, then we may see DOGE move above $20 in the coming days. Still, a price of $0.50 is far from likely in the short run. When making such price predictions, we must take into account other cryptocurrencies, such as BTC, which are the main determinants of how the rest of the market performs.
Latest News for DOGE – Affecting Price
First things first, when it comes to marketing, Dogecoin is a cryptocurrency like no other. With the backing of Elon Musk, Dogecoin has outperformed some of the biggest names in the crypto market, even though it has less utility. More recently, in a drone show of Tesla Cyber Radio, the logo of Dogecoin could be spotted, giving exposure to the crypto like no one else.
— DogeDesigner (@cb_doge) April 8, 2022
Musk has maintained his full support to the DOGE community, and he is also aiming to make Dogecoin the future of digital payments. Through the use of Musk’s Starlink, Elon has made possible the first-ever Dogecoin transaction without the use of the internet. With the transaction being successful, it is very likely that Musk might be attempting to convince the DOGE community to do the same and increase the influence that both Starlink’s satellites and Elon have.
— DogeDesigner (@cb_doge) April 22, 2022
Ultimately, while DOGE may not be bullish in the technical aspect, its fundamentals are still very strong. With the support of Elon Musk, DOGE remains an exciting bullish prospect for the coming months.