DOGE/USD is trading above $0.050 within a short-term symmetrical pattern
Dogecoin saw significant volatility in the first weeks of the year, rising to an all-time high of $0.086 in early February. But the upside potential appears to have faded, despite continued tweeting from its most prominent supporter Elon Musk.
Today, however, saw the cryptocurrency’s bulls looking to capitalise on news from a different quarter as they eye a rebound to prices last seen on 25 February.
Yesterday, the crypto ATM firm CoinFlip announced that it had added DOGE to the list of coins available at its ATMs. According to the firm, retail buyers in the US now have an opportunity to purchase the popular cryptocurrency with cash at any of its 1,800 ATMs.
The market reaction to the news has seen the DOGE/USD price break above the resistance line at $0.050. The price movement now looks likely to extend upward in the short term, breaking what has been a downward trend for the 15th ranked cryptocurrency.
Dogecoin price outlook
DOGE/USD has largely traded downwards since the first week of February when a major pump saw it smash into the top ten by market cap by surging to an all-time high of $0.086.
The upside witnessed over the past 24 hours, therefore, moves DOGE price above the key support level at $0.048, marked by the 0.786 Fibonacci retracement level of the downswing from $0.060 high to $0.044 low.
On the 4-hour chart, DOGE/USD is looking to establish support above the 0.618 Fib level ($0.050). This will allow bulls to move higher towards the resistance line of a recently formed symmetrical triangle pattern.
The RSI and MACD indicators are suggesting the upside path is most likely as bulls build momentum.
Another leg up could see buyers conquer resistance at the 0.5 Fib retracement level ($0.052). If the momentum holds and buying pressure sends the DOGE/USD pair above the down-trending line of the symmetrical pattern, bulls could retest the area around $0.056 (0.236 Fib level).
The next short-term targets would be in the range of $0.060—$0.065, above which lies the prize of $0.086.
On the contrary, a breakout needs to occur for the bullish perspective suggested by the RSI and MACD to validate. Otherwise, it is likely DOGE’s upside momentum could dissipate and allow prices to bounce lower towards the triangle support.
At the time of writing, DOGE is trading around $0.051, which puts bulls above the 20-day EMA ($0.0503). This zone could form the primary support zone if a swift rejection follows an upside to $0.052.
In this case, bears could seek targets around previous support zones at $0.048 and $0.044.
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