Key Insights
- DOGE is trading above $0.146 after an 18% increase over the past week.
- The dominant memecoin may face a correction below $0.14.
Dogecoin’s Recent Performance
In a notable resurgence of the cryptocurrency market, coins such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are leading the charge, largely influenced by geopolitical tensions in Venezuela. An unfolding situation saw U.S. authorities detain former Venezuelan President Nicolás Maduro and his wife, stirring market activity.
As a result of these developments, Dogecoin has extended its gains for five consecutive days, while SHIB and PEPE have opted for a brief pause. There is optimism in the market; however, analysts suggest that DOGE may soon experience a minor pullback, potentially dipping below the $0.14 mark in the short term.
Potential Correction in Dogecoin’s Trajectory
The chart for DOGE/USD over a four-hour timeframe shows bullish momentum, buoyed by Dogecoin’s rally over the past week. Currently, the coin is maintaining support above the 50-day exponential moving average (EMA) at $0.14339 and may bounce back in the near term.
If bullish sentiment persists, DOGE could target the 200-day EMA positioned at $0.18202, coinciding with a supply zone between $0.18100 and $0.18500.
Technical indicators favor a bullish outlook, with a Relative Strength Index (RSI) reading of 73 suggesting DOGE is approaching overbought territory. Meanwhile, the MACD lines continue to rise alongside green histogram bars, signaling increasing bullish momentum.
Nonetheless, should the upward trend lose steam, DOGE risks dropping below the $0.14339 level, which could trigger a retest of the psychological barrier at $0.1300.
