Dogecoin shows renewed strength, eyes $0.10
Key takeaways
DOGE is up 1% and is now trading at $0.095.
The memecoin could rally towards the $0.10 psychological level in the near term.
Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are all displaying signs of renewed strength on Tuesday, as bullish technical setups emerge across major meme coins.
DOGE and SHIB are testing key resistance zones, with a close above these levels potentially signaling further upside. Meanwhile, PEPE continues its recovery, finding support near the crucial 50-day Exponential Moving Average (EMA), setting the stage for a potential rally continuation.
Derivatives data support a bullish outlook for Dogecoin
Dogecoin is up 1% in the last 24 hours and could rally higher in the near term amid a bullish outlook from the broader crypto market.
Bitcoin has reclaimed the $76,000 level, while Ether is now trading above the $2,300 mark once again.
Meanwhile, Dogecoin is looking to embark on a breakout above the $0.10 psychological level if the bullish trend persists.
Dogecoin’s derivatives data suggests that the bulls are currently in control of the market. The futures Open Interest (OI) now reads $1.23 billion, up from the $986 million recorded on Monday.
The increase in OI suggests that retail traders are opening more positions in anticipation of a bullish move by Dogecoin.
Dogecoin could extend gains with a close above the 50-Day EMA
Similar to other leading cryptocurrencies, the DOGE/USD 4-hour chart remains bearish and efficient. It has surpassed the 50-day EMA at $0.95 following its 2.4% rally on Monday.
DOgecoin been consolidating beneath this resistance for over a month and briefly broke above it last week, but struggled to maintain support.
If DOGE closes its daily candle above the $0.095 level and holds, the altcoin could extend its rally toward the 100-day EMA at $0.105.
The Relative Strength Index (RSI) on the daily chart is at 52, above the neutral level of 50, signaling weakening bearish momentum. Furthermore, the Moving Average Convergence Divergence (MACD) indicator shows green histogram bars, reinforcing the positive outlook.
On the downside, if DOGE fails to hold above the 50-day EMA, it could face a potential correction, bringing the price back toward the February 6 low of $0.080.
