- Dogecoin price holds Tuesday’s rebound, trading inside Bollinger Band, within 15-week triangle, and above 200-day SMA.
- Stochastic rebound aids DOGE recovery, but mid-Bollinger Band may cap gains before testing key $0.2300 triangle resistance.
- Upper BB acts as an extra upside filter before highlighting multi-month horizontal hurdle.
- DOGE may see a short-term rise, but likely to stay in a multi-month sideways range.
Dogecoin (DOGE) price posts mild intraday gains near $0.2150 on Wednesday, building on yesterday’s bounce from a month-low inside a 15-week descending triangle.
The memecoin’s recent surge comes after bouncing off the lower Bollinger Band and nearly oversold Stochastic signals, with added strength from staying above the 200-day Simple Moving Average (SMA), fueling a strong recovery vibe.
Buzz around CleanCore’s $175 million DOGE Treasury plan, combined with strong trading volume, is fueling DOGE’s latest price surge, while its market capitalization also shows a rebound.
For more news details, check out our Crypto Bytes.
According to Santiment, Dogecoin’s daily trading volume remains sturdy around $2.1 billion, after rising to a one-week high on Monday, whereas the market cap improves to $32.64 billion, up for the second consecutive day.
Even with strong catalysts supporting DOGE’s recovery, its long consolidation since February may limit the bulls’ momentum.
Dogecoin Price: Daily Chart Lures Short-Term Buyers
A clear U-turn from the lower BB joins the nearly oversold Stochastic conditions, and a successful trading above 200-day SMA, to keep DOGE buyers hopeful.
Still, the middle BB around $0.2215 guards immediate upside of the memecoin before highlighting the stated triangle’s top surrounding $0.2300.
Even if DOGE breaks above the $0.2300 triangle resistance, the upper Bollinger Band near $0.2400 may challenge buyers next.
Beyond that, the previous monthly high of $0.2560 and the multi-month range top at $0.2870, as well as the $0.3000 psychological level, will be in the spotlight.
On the downside, DOGE’s pullback is limited by strong support near the lower Bollinger Band at $0.2030, the $0.2000 mark, and the 200-day SMA at $0.1970.
Below that, the triangle’s bottom around $0.1890 is buyers’ last defense before bears target the 6.5-month trading range low near $0.1430.
Dogecoin Price: Four-Hour Chart Highlights Triangle Pattern
A 15-week-old descending triangle formation, currently between $0.2300 and $0.1880, restricts short-term DOGE moves on the four-hour chart.
That said, a slightly descending trend line from July 11 restricts immediate downside near $0.2060, whereas a convergence of the 100-bar and 200-bar SMA, near $0.2200, guards the quote’s immediate recovery moves.
It’s worth noting that the Stochastic oscillator is strongly bullish on the four-hour chart, suggesting a continuation of the quote’s latest rise.
In a case where Dogecoin breaks the $0.1880 support, multiple levels around $0.1560-$0.1550 may act as additional downside filters before shifting the market’s attention to the daily chart levels.
Meanwhile, the DOGE’s upside clearance of $0.2300 will need validation from the $0.2400 resistance, mentioned on the daily chart, to convince buyers to target the higher levels.
Conclusion
Dogecoin’s recent rebound is gains buyer’s attention, especially when backed by upbeat signals from the Stochastic momentum indicator and a bounce off the lower Bollinger Band.
With this, the DOGE seems to be heading toward the $0.2200 mark, with a shot at pushing higher if successfully crossing the $0.2300 and $0.2400 hurdle.
Stil, the broader sideways trend since February is likely to continue, keeping traders on the lookout for major catalysts.
