Dogecoin (DOGE) continues to hold its ground above its declining trendline on Tuesday, February 17, after a successful retest of the support, which confirms the prevailing market structure to remain bullish.
According to the crypto analyst Trader Tardigrade, the support holds firm, fueling the hopes of the market players for the price to go higher. However, caution must always be taken since the price momentum seems to ease, thus requiring careful observation.
Source: Trader Tardigrade X Post
To move towards the $0.15 milestone, DOGE will require stronger buying support and a rise in trading volume. Traders will need to keep an eye out for strong bullish candles to prove the conviction behind the move.
Until then, optimism must be tempered with the key technical indicators. The momentum will determine whether the move will sustain or falter.
Also Read: Dogecoin (DOGE) Set for Potential Relief Rally if $0.10 Level Survives
DOGE Recovery Attempt Meets Major Resistance
According to TradingView, as of Tuesday, February 17, from the daily chart, the price is still in its downtrend, making lower highs since the middle of January around $0.15.
The decline has sliced through the major Fibonacci levels after a brief consolidation at 0.382 before accelerating in early February. The price increase from the buyers’ side found support at $0.08-$0.09 before rising sharply in what can be considered a corrective move.
Source: TradingView
The price is currently trading in the 0.236 retracement level around $0.098. This is a clear level of decision. If the price can stay above $0.11-$0.12, there is a possibility of a relief rally to $0.127 and possibly $0.14.
However, if support does not come in, there is a good possibility of the price falling back to $0.09 and testing the February lows once again.
Momentum Indicators Suggest Improving Momentum
RSI(14), which rebounded from the oversold region and is now trading in the low 40s, above its signal line, suggests that the downward pressure is decreasing, but the buying is not dominant yet.
The slope is upward but mild, which suggests stabilization and not a reversal. A breakout above 50 will confirm that the price is gaining momentum and that there is upward pressure ahead.
Source: TradingView
The MACD has just made a bullish crossover, with the fast line moving up toward the signal line. The histogram bars have gone positive. This shows a rise in short-term momentum after a dip.
However, the two lines are still below zero. The trend direction remains guarded. If the histogram bars widen, then the momentum of the uptrend can build up.
Also Read: Dogecoin Attempts Reversal as Technical Indicators Signal Potential $0.25 Rally