DOGE Rises 63%, But Can It Hold The Level Of 0.227 USD?

Dogecoin has been bullish in the recent trading session, rising from $0.17587 to a peak of $0.28667 according to cryptocurrency analyst BitGuru. This move has drawn attention across the market. However, the momentum has cooled and the price is currently testing a key support zone near $0.227 with a gain of 63%. Breaking below this level could cause DOGE to continue its bearish trend, with the next demand zone at $0.18. As of the time of writing, the price of this token is $0.225195, down 5.85% in the past 24 hours. The sharp decline signals a wave of short-term profit-taking. Trading volume has exceeded 3.5 billion dollars, indicating strong activity from traders looking to capitalize on the recent bullish trend. Mixed Signals From Technical Indicators On the 4-hour chart, a hidden bullish divergence has appeared. DOGE formed a higher low while the Relative Strength Index (RSI) made a lower low. As analyst Trader Tardigrade predicts, this pattern can sometimes lead to a price recovery, but it is not guaranteed. Despite the divergence, the RSI index remains at a neutral level. Market observers are waiting for confirmation of Dogecoin's price movement before expecting a strong recovery.

If DOGE can rise back above the $0.245 level, the price may attempt to reach $0.268. Until then, the possibility of the price moving sideways or decreasing further may still occur. Long-term holders remain stable as the main support faces pressure. DOGE is currently under pressure to hold the level of $0.227. If this support level is broken, analysts predict the price could drop to $0.198 or lower. The current resistance level is seen around the 0.245 dollar mark, a level that needs to be conquered for the bullish momentum to return. Some analysts are concerned that DOGE not holding above the 0.227 dollar level could trigger another wave of sell-off.

However, this coin has also witnessed a significant increase in the actual profit/loss ratio, an indicator tracking the amount of profit that traders are actively holding. This change indicates that short-term holders are driving the current decline. Long-term DOGE holders are not exiting their positions. The Liveliness index, a measure of wallet activity, has decreased - indicating that long-term holders are still maintaining their positions. Their continued support has helped stabilize DOGE during previous corrections.