Important Points to Note
DOGE has experienced a 1% increase and is currently priced at $0.095.
There is a possibility for the meme coin to surge towards the $0.10 psychological mark in the near future.
Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are all demonstrating signs of renewed strength on Tuesday, showcasing bullish technical patterns within the major meme coins market.
DOGE and SHIB are challenging significant resistance levels, and a breakthrough above these barriers could indicate further upward movement. Meanwhile, PEPE is on a recovery path, finding stability close to the crucial 50-day Exponential Moving Average (EMA), laying the groundwork for a potential continuation of its rally.
Positive Derivatives Data for Dogecoin
With a 1% increase over the past 24 hours, Dogecoin is poised for further growth in the short term, supported by an optimistic sentiment in the broader cryptocurrency market.
Bitcoin has reclaimed the $76,000 threshold, while Ether is once again trading above $2,300.
The focus for Dogecoin is now on breaking above the $0.10 mark, fueled by the current positive trend.
Analyzing Dogecoin’s derivatives data reveals that the bulls are currently dominating the market. The futures Open Interest (OI) has risen to $1.23 billion from $986 million recorded on the previous day.
The increase in Open Interest suggests that retail traders are increasingly opening positions in anticipation of a bullish movement in Dogecoin.
Potential for Dogecoin to Extend Gains
Similar to other major cryptocurrencies, the DOGE/USD 4-hour chart is showing a bearish yet efficient trend. It has surpassed the 50-day EMA at $0.95 following a 2.4% rally on Monday.
Dogecoin has been consolidating below this resistance for over a month and briefly surpassed it last week, but struggled to maintain the momentum.
If Dogecoin closes its daily candle above $0.095 and maintains this level, the altcoin could continue its rally towards the 100-day EMA at $0.105.
The Relative Strength Index (RSI) on the daily chart stands at 52, above the neutral 50 level, indicating a weakening bearish momentum. Additionally, the Moving Average Convergence Divergence (MACD) indicator displays green histogram bars, reinforcing the positive outlook.
On the downside, failure to maintain above the 50-day EMA could lead to a potential correction, pushing the price back towards the February 6 low of $0.080.
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