- Dogecoin’s price soared 28.14% on August 7, the largest daily gain since the 100.03% rise on April 16.
- In 2021 alone, DOGE records a positive week for the third time in a row.
- A small spike in social dominance is not gaining momentum, which indicates the lack of FOMO in the token market.
Dogecoin price did not generate interest from July 22 to August 6, trading in a narrow range and creating the basis for a sharp move, accentuated by the tightening of the Bollinger Bands to a level similar to that that preceded the April rally. Thanks to a 28.14% rise from Aug 7, DOGE is now trading well above the 50-day simple moving average (SMA) resistance, which improves the outlook for the digital asset. Now the question is whether the weekend was technical due to excessive price contraction or the start of sustained gains.
Dogecoin price is at a turning point now
Dogecoin price closed last week with a 17.70% gain, the best return in a week since early June, with a monthly gain of 25.50% at the time of writing and nearing the discussed price target. Previously $ 0.291, June 25 high.
Thanks to the high test on June 25, the Dogecoin price is now at an inflection point. If the peak was a technical event due to a significant price squeeze, DOGE should soon dip below the 50-day moving average and reach a new corrective low.
Alternatively, suppose this is the beginning of sustained growth. In this case, the Dogecoin price could consolidate around the June 25 high of $ 0.291, forming the handle of a handle-patterned cup that began on June 25.
The measured movement of the base of the DOGE handle cup is 44%, assuming a price target of $ 0.417.
As long as Dogecoin stays above three highs on July 28 at $ 0.220, July 30 at $ 0.222 and August 1 at $ 0.220 on a daily close, DOGE should fill the pen and be ready to explore the $ 0.417 price target.
DOGE / USD daily chart
The next bullish Golden Cross pattern on the six-hour chart increases the potential for significant price movement in Dogecoin when the 50 six-hour SMA crosses above the 200 six-hour SMA. The previous Croix d’Or took place in early April, before the start of the historic DOGE rally. In addition, the November 2020 rally was preceded by a golden cross on the six-hour chart.
DOGE / USD 6-hour chart
Failure to hold $ 0.220 on a daily close contradicts the base handle scenario and positions Dogecoin price at least to test the 50-day SMA at $ 0.215 and possibly the 200-day SMA at the dollar level. 0.201.
The role of social media dominance and the resulting fear of missing out (FOMO) have been key to many of the advances in 2021. The growth in social media traffic has accompanied the recent growth, but the percentage of social media traffic associated with DOGE versus the cryptocurrency basket has rebounded quickly. This is not an optimistic move, especially for the digital token, which has seen better days when social media dominance exceeded 40% of total traffic.
DOGE Social Dominance – Sentiment
The past week could have been a period of transformation in the Dogecoin price structure, or just a brief technical event. How DOGE consolidates gains will determine how the inflection point is resolved, but with the hype already back to previous lows, this casts a shadow over the bullish narrative.
Here, analysts at Netcost-Security assess where DOGE can go next after achieving its intended goal.