Dogecoin Rebounds to $0.15: Recovery Backed by RSI Divergence and Rising Trading Activity
Summary:
On April 18, Dogecoin (DOGE) surged back to a $0.15 position, demonstrating potential for recovery. The popular cryptocurrency showed strengthened trading activities and solid technical setup. Market data suggested a 22% rise in the spot trading volume within 24 hours, indicating renewed investor interest. This recovery surge was supported by a positive RSI divergence and a falling wedge, predicting a bullish reversal with a potential breakout target of $0.1740. However, readers should conduct their personal research before making any investment or trading decision as these involve risk.
On April 18, the price of Dogecoin (DOGE) swiftly ascended back to $0.15, as traders rallied, bolstered by robust support. This follows DOGE's previous dip to $0.1409, but its subsequent 9% rise, reaching a daily high of $0.1536, according to data from Cointelegraph Markets Pro and TradingView.
This well-known internet-based currency is exhibiting signs of an imminent recovery, fueled by a surge in trading actions and a more solid technical configuration. The past day has seen a boost in trading volumes for Dogecoin, a clear hint at renewed investor engagement.
Data from Coinglass, which monitors market activity, reveals a 22% growth in the spot trading volume within 24 hours, hitting $2.26 billion. The primary contributors to this activity were Binance, providing 17% of the volume, OKX with 7%, and Bybit with 4.5%, along with others.
This revitalization of trading volume signals a resurgence in attention and actions surrounding Dogecoin, implying that traders are keeping a vigilant eye on its pricing trends.
An encouraging RSI divergence is bolstering DOGE’s resurgence. Ahead of Dogecoin's rise on April 18 was a growing bullish divergence of its price trends and the relative strength index (RSI).
Between April 13 and 18, DOGE's price fell, creating lower lows. However, in the same timeframe, the four-hour RSI rose, setting higher lows, as indicated in the accompanying chart.
A technical analysis rule denotes such a divergence between declining prices and increasing RSI as a sign of the prevailing downtrend’s strength. This encourages traders to increase their purchases during local price drops, facilitating a recovery.
Within this timeframe, DOGE also showcased a falling wedge, defined by its price movements contained by two descending, intersecting trendlines. A falling wedge generally predicts a bullish reversal, which unfolds when the price outpaces its upper trendline, reaching a length equivalent to the greatest distance between the trendlines.
Mapping this same technical analysis rule onto the ongoing DOGE/USD price developments suggests a breakout target of $0.1740, a roughly 16.35% increase from present figures.
In anticipation of the approaching Bitcoin halving, Dogecoin's price managed to stay above $0.14, implying potential for growth in coming days. It rebounded from this level on April 18, achieving a 6.3% recovery to its current position.
IntoTheBlock data consolidates the importance of the $0.14 level for Dogecoin investors. The IOMAP model reveals that this level fell within the $0.1396 and $0.1438 price bracket, where around 104,190 addresses had previously purchased roughly $3.03 billion DOGE.
This robust support seems ample to counter any sales-driven pressure that might force DOGE further down.
However, readers should not interpret this information as investment advice or recommendations. Every investment or trading move entails risk. Individuals are strongly encouraged to perform their own investigations before reaching a decision.
Published At
4/18/2024 9:24:29 PM
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