Dogecoin rose 6% on Friday, with a slight increase in trading volume
The cryptocurrency is moved by the slightest of positive news
DOGE is still bearish unless bulls reclaim $0.09
Investors are not yet done with Dogecoin (DOGE/USD). The cryptocurrency traded up 6.50% on Friday to erase some of the losses it had amassed in the past weeks. The token’s trading volume was slightly up at 157%, indicating that buyer interest was back. But is this enough to make DOGE mount a comeback?
It could be too early to conclude since DOGE already lost a key level at $0.09. I consider this crucial resistance the key litmus test if DOGE bulls have to have the final say on price at year-end.
There is no harm in lauding DOGE to finish the year strong, but you just need to trim the expectations. This is a cryptocurrency that makes a strong statement at the slightest wind of a positive fundamental. Who knows what DOGE father Elon Musk holds for the Santa holiday and new year?
But as the name meme suggests, DOGE is a cryptocurrency that rarely goes beyond its joke label. So, maintaining expectations low towards the year-end can keep you optimistic before the next bull run. Below are the levels to watch for price action should DOGE build on the bull move.
DOGE price outlook and analysis
On the daily chart, DOGE initiated a comeback at the $0.07 bottom. That is underlined by a rise in the buy-side volumes. The trading volume is still low to consider a possible parabolic movement for the cryptocurrency’s price.
The RSI has slightly improved from a near-bottom zone. It still remains below the midpoint, indicating bear control.
What next for DOGE?
DOGE price could maintain the current surge, although this will likely be in the short term. The next resistance lies at $0.09, although bear pressure could force a correction before this zone. $0.09 and $0.10 are the levels to watch in the bull scenario.
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