The price of Dogecoin (DOGE) experienced a notable surge of 6% within the last 24 hours, reaching $0.1321 as of 7:25 a.m. EST, accompanied by a 5% increase in trading volume to $1.89 billion.
This significant uptick comes amidst insights from renowned crypto analyst, Ali Martinez, suggesting a potential commencement of a new bull run for Dogecoin, despite recent corrections in its price trajectory.
Analysts highlight indicators of a bullish trend reversal, particularly observed through a double-bottom pattern emerging around the $0.1220 support level. This pattern emerges subsequent to a decline from the $0.2237 resistance level, which momentarily favored bearish sentiments, triggering a corrective phase.
Optimistic investor sentiment remains evident, notably sustaining Dogecoin’s price above the 200-day Simple Moving Average (SMA). However, challenges persist as the price encountered resistance at the 50-day SMA, reflecting significant selling pressure at higher price points. Yet, the resurgence of buying interest is anticipated to surpass this hurdle, as indicated by mounting pressure.
Moreover, the Relative Strength Index (RSI) points towards a rebound from the oversold threshold of 30, with expectations of momentum sustaining its trajectory towards the midline level of 50.
Looking ahead, Dogecoin bulls are actively pursuing an upward trajectory, bolstered by support from the 200 SMA. The current momentum within the $0.1220 support zone suggests a potential resurgence, with prospects of reclaiming the previous high of $0.2237 in the foreseeable future.
However, a cautious stance remains imperative, as bears retain the capacity to prolong the corrective phase, potentially pushing the price below the $0.1220 support level. In such a scenario, bulls may find refuge at the $0.1057 support level.
