Dogecoin could see more upside momentum, at least on the shorter-term time frames, as a bullish divergence has recently formed. Price made higher lows while stochastic drew lower lows, suggesting a potential rally.
- Price is making another test of the 50 satoshis level, which has served as a near-term resistance.
- A break above 50 satoshis and the longer-term moving average (green) could confirm that an uptrend is likely to take place.
- Moving averages are treading closer together, suggesting the possibility of an upward crossover and a potential rally.
- Next area of interest is located at the 55 satoshis level, which might keep further price gains in check.
Stochastic is still moving higher, confirming that buying momentum is favoring dogecoin price against bitcoin for now. However, positive developments in the bitcoin industry lead to more mainstream acceptance and more convenient transactions, which could still keep the DOGE/BTC long-term downtrend valid.
A selloff below the previous lows of 48 satoshis could mean more downside pressure and a potential drop to the longer-term floor at 40 satoshis. Volume hasn’t picked up yet but it usually does during the middle of the week.
The upcoming Fed interest rate decision could have an impact on dogecoin price, as this event usually drives market sentiment. Upbeat remarks could keep risk appetite strong, which could encourage cryptocurrency investors to be more aggressive and ramp up their holdings. On the other hand, dovish remarks could lead traders to exchange their dogecoin or bitcoin for cash instead.
A small bounce could find resistance at the 100 EMA, which seems to have held as an inflection point in the past. This could mean small gains until the 51 satoshis level before dogecoin price resumes its ongoing selloff. After all, the longer-term EMA is still trading above the shorter-term EMA, confirming that the ongoing trend is likely to carry on.