Dogecoin / USD Technical Analysis: Jumping To New Highs
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- Dogecoin is bullish in the short-term, with the cryptocurrency surging to a fresh 2019 trading high
- DOGE / USD has a neutral medium-term bias, with price briefly testing the pair’s 200-day moving average
- A large inverted head and shoulders pattern has now formed across the daily time frame
Dogecoin / USD Short-term price analysis
In the short-term Dogecoin has a bullish outlook, with the DOGE / USD pair rallying to its highest trading level since December of last year.
The four-hour time frame shows that the inverted head and shoulders pattern has been triggered, with the bullish pattern now reaching its overall upside objective.
Technical indicators remain bullish on the four-hour time frame, with both the MACD and RSI indicators generating strong buy signals.
DOGE / USD H4 Chart (Source: TradingView)
Pattern Watch
Traders should note that the latest advance has invalidated a bearish head and shoulders pattern on the four-hour time frame.
Relative Strength Index
The RSI indicator is also bullish on the four-hour time frame and continues to highlight growing demand.
MACD Indicator
The MACD indicator on the four-hour time frame is bullish, with both the MACD signal line and the histogram generating buy signals.
Fundamental Analysis
Dogecoin is popular in the cryptocurrency world, due to its high speeds and low transaction times. Although it has since been eclipsed by other digital currencies, it still has a substantial network of merchants as well as many people using it for online tipping. The popularity of the meme currency shows no sign of slowing down, as evidenced by the number of April Fools’ headlines.
Dogecoin / USD Medium-term price analysis
Dogecoin has a neutral medium-term bias, with the cryptocurrency testing its trend-defining 200-day moving average for the first time since October 2018.
The DOGE / USD pair has started to correct lower after testing its 200-day moving average, although the latest surge has created a large inverted head and shoulders pattern on the daily time frame.
The daily time frame continues to show bullish MACD price divergence which extends back to around October of last year.
DOGE / USD Daily Chart (Source: TradingView)
Pattern Watch
Traders should note that the newly created inverted head and shoulders pattern on the daily time frame has an upside projection that extends towards the October 28th swing-high.
Relative Strength Index
The RSI indicator is bullish on the daily time frame, although it has now reached extreme overbought conditions.
MACD Indicator
The MACD indicator is bullish on the daily time frame and is currently generating a strong buy signal.
Fundamental Analysis
Although popular, in the medium term the project will face similar problems as before: a weak team, high inflation, a lack of a roadmap, innovations and financial resources. These factors will hinder its development.
Conclusion
Dogecoin has an improved outlook over both time horizons, with the latest surge in the cryptocurrency changing the technical picture for the DOGE / USD pair.
The DOGE / USD pair now has a stronger likelihood of eradicating the bullish MACD price divergence if buyers can build a sustained rally above the pair’s 200-day moving average and ignite the inverted head and shoulders pattern on the daily time frame.
For a quick introduction on crypto’s adorable mascot coin, head over to our coin guide for DOGE here.
Dogecoin can be quite serious too, which is why we published our detailed analysis of the coin in our DARE Report.
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