An analyst highlights a bullish divergence on Dogecoin, suggesting that traders should focus on the numbers rather than the news.
Dogecoin (DOGE) continues to face a challenging period, with its price stagnating. Over the past week, Dogecoin has experienced a significant decline of 15.30%, with the current price standing at $0.1715.
While these figures reflect recent struggles, analysts have identified key technical indicators that suggest potential future gains.
In a recent post on TradingView, one analyst highlighted a bullish divergence on Dogecoin’s 3-month chart. The chart shows the price has been making higher lows, indicating an upward trend.
Meanwhile, the RSI, a momentum indicator, is trending lower. This discrepancy creates a “bullish divergence,” which often signals a potential reversal or rally.
“Don’t be Fooled by The News”
While the analyst refrained from providing a specific price target, he emphasized the likelihood of Dogecoin reaching new highs in the future. In particular, he urged Dogecoin enthusiasts to ignore negative news causing temporary fluctuations and maintain a bullish perspective.
“New all-time highs [likely for Dogecoin]—don’t be fooled by the news,” he wrote.
Notably, a few days ago, Elon Musk, head of the U.S. Department of Government Efficiency, denied the possibility of using Dogecoin in the federal government. Musk’s words contributed to a drop in Dogecoin’s price to trade below $0.17, although it has recovered slightly.
Testing Key Resistance Levels
Elsewhere, another trader, Raj Kumar, analyzed the current market situation, focusing on key support and resistance levels. He shared a chart showing that Dogecoin’s price has surpassed a critical resistance level of around $0.17236.
This level has acted as a barrier to upward movement, with previous seller pressure limiting the price from breaking through. The trader points out that this breakout could pave the way for further gains.
Support Zones Indicate Possible Rally
These predictions follow similar commentaties by MMBTtrader, which outlined important support zones for Dogecoin. After breaking past a resistance level, the analyst noted that a retest of the current price zone could be necessary before any major rally can take place.
The key support zones identified include $0.13548 and $0.09024. If Dogecoin stabilizes at these levels, it could potentially lead to a surge, with the trader predicting a rise to the $0.30-$0.40 range.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
