Dogecoin (DOGE) remains on a bullish trajectory, despite a recent 5.8% pullback from $0.25 on May 11. The cryptocurrency continues to find support above $0.225, suggesting that the overall upward momentum is intact. A key technical indicator, the 5-day Relative Strength Index (RSI) crossover, remains firmly in bullish territory, with the short-term RSI at 71, well above the 59 signal line.
The RSI crossover, which occurred on May 7, suggests that the medium-term bullish trend for DOGE is still active, and $0.30 remains a valid target. However, much depends on Bitcoin’s performance, especially as it stabilizes above $104,000. If Bitcoin continues to maintain this level, DOGE is expected to regain upward momentum. The current price of DOGE is $0.2341, reflecting a market pause amid profit-taking and broader geopolitical factors, including trade talks and escalating tensions in India-Pakistan.
Market Dynamics:
Whale Activity: Significant whale movements continue to influence DOGE’s price. A recent $148 million move, along with changes in the derivatives market, suggests continued high-volume trading.
Profit-Taking: The recent dip below $0.25, accompanied by a 19.55% drop in daily trading volume, reflects cautious sentiment and profit-taking behavior. Despite this, the RSI crossover indicates that a breakout could be on the horizon if Bitcoin’s momentum holds.
Looking Ahead:
Dogecoin’s price structure remains bullish as long as support at $0.225 holds. Should Bitcoin continue to perform well, and if DOGE breaks above $0.25 with strong volume, the path to $0.30 becomes more likely. Strategic traders will closely monitor Bitcoin’s movements, particularly any fluctuations due to ETF developments or macroeconomic news.
Risks:
If Bitcoin fails to hold above $100,000, DOGE could face further correction, with a drop below $0.225 potentially leading to additional liquidations and invalidating the current bullish thesis. However, the bullish momentum indicated by the RSI suggests that the current market consolidation could resolve to the upside.
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