Dogecoin (DOGE) has seen a recent surge in developer activity, which is typically viewed as a positive sign for a cryptocurrency project.
According to reports, the Dogecoin development team has been actively working on improvements to the network. This suggests that new features or upgrades may be forthcoming.
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From a technical analysis perspective, this boost in development activity appears to be generating some positive momentum for Dogecoin. After breaking out above a Falling Wedge pattern, DOGE price reached a high of $0.085, representing a 30% gain.
However, the rally was short-lived. DOGE has since pulled back below its 200-day moving average at $0.08 and previous support at $0.07. This retracement gave up all of the prior gains from the Falling Wedge breakout. DOGE is now trading in the $0.06 range as of August 29, 2023.
The recent pullback does not necessarily negate the uptrend. DOGE price needs to regain the $0.07 level as well as the 200-day MA to confirm the continuation of the bullish trend. Alternatively, if the pullback extends to the $0.053 support level, it could offer an attractive swing entry opportunity.
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- The 20-day EMA is sloping down and the RSI is below 45, reflecting advantage to the bears in the short-term. Sellers will look to drive the price below $0.06.
- However, the MACD Histogram bars are rising even as the MACD Line remains below the Signal line. This divergence suggests momentum is bottoming and could swing back to the upside.
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Key Levels to Watch:
- Support at $0.053 and $0.06
- Resistance at $0.07, $0.085 (recent highs)
- Further resistance at $0.10
The recent development activity for Dogecoin is encouraging. If the bullish momentum can regain its footing, DOGE could make another attempt at the $0.07 and $0.10 overhead resistance. The technicals suggest keeping a close watch on the $0.053 support for any reversal signals. Upside potential appears limited in the near-term but could materialize in a more sustained fashion if the fundamental catalysts remain in play.
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