Dogecoin (DOGE) Price Analysis: Is A Rally Possible?

DOGE price appears to have launched a new bullish phase with bulls eager to push above resistance at $0.2. As sentiment gradually improves, investors are beaming with hope to see a stronger trend reversal.

DOGE price encountered a new bullish phase as bulls pushed the token above resistance at $0.2. As sentiment improved, investors hoped to see a stronger trend reversal.

An assessment of the current technical and fundamental outlook showed that several factors could impact Dogecoin price action going into August, including this week’s FOMC meeting and investor behavior.

DOGE Price Analysis: Is A Rally Possible?

After losing ground in the first weeks of July, bulls finally took over, leading to a trend reversal from support at $0.1.

Dogecoin quickly rallied to $0.14, confirming a falling wedge pattern. This pattern typically leads to a 70% breakout, suggesting that DOGE could rally to $0.216. A retest of the upper trend line could offer unique entry positions.

A falling wedge is a bullish reversal pattern formed as the price slides between two slanting trend lines.

According to CoinMarketCap data, bulls may have run out of steam as trading volume dropped to $800 million. Dogecoin must maintain the immediate confluence support formed by the 50-day Exponential Moving Average (EMA) and the 200-day EMA.

A retest of the upper trend line support is possible, and the presence of the 20-day EMA will increase the chances of DOGE price resuming the uptrend.

The Moving Average Convergence Divergence (MACD) indicator recently gave a buy signal, encouraging traders to buy the dip. However, the bulls must work to keep this call to buy active this week.

How Dogecoin Futures Open Interest May Affect This Week’s Rally

Dogecoin futures interest in the open market has risen since last weekend to reach above $5 billion.

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