After the announcement of launching Dogethereum bridge, Dogecoin has reported a gain of more than 18% in a single day. Dogecoin is soaring at a fast pace and became the only cryptocurrency in the top 100 list by market capitalization which has shown a double-digit return above 20%. It is expected that the impact of the announcement of Dogethereum will continue to stay and Dogecoin will follow a positive trend in the future but the major concern is there is a selling pressure created at intraday high.
On Monday Dogecoin kickstarted its day by adding value to its prevailing upside trend. During the early Asian trading session, the pair of DOGE/USD had made highs towards 0.00572-fiat. At the beginning of the European session, the pair fell a little and started trading at 0.0048-fiat. The whole day the pair traded in a narrow range and maintained its gain. Because of the selling pressure at intraday high, the pair has broken below the ascending trendline formation. When other cryptocurrencies such as bitcoin will get the momentum Dogecoin could head towards downward.
In future, the Dogecoin will be expected to trade in a narrow range. For Dogecoin the interim support is 0.00503-fiat and interim resistance is 0.00558-fiat. In such a situation, investors can go for long towards resistance on a bounce back from support and short towards the support on a pullback from resistance. If the Dogecoin breaks its resistance level then it can touch the level of 0.006-fiat. If the Dogecoin will be able to break the 0.006-fiat level then the next target can be 0.0064-fiat. If you are going long in Dogecoin at any of these levels you can put a stop loss of four pipes below the entry level.
Currently, DOGE/USD is trading at above its 100H moving average. It is indicating that the pair is at bounce back level and can trade above the prevailing ascending tradeline. Other indicators such as RSI and Stochastic are also showing similar bouncebacks.
Currently, for Dogecoin there is a bullish trend prevailing in the market and investors’ sentiments are positive towards so we can expect it can touch the new highs in near future.