Dogecoin Moonboys Set Sight on $0.35, But Are DOGE Trading Volumes Too Low?

Dogecoin is down but not out.

A simple glance at the coin’s performance in the daily chart reveals strength—so much for the joke project that’s been a source of inspiration for many other forks–SHIBA-INU and a near endless list of Dog coins.

Dogecoin Market Performance and Price Status

The mania peaked, the bubble popped, and DOGE is now down roughly 65 percent from 2021 tops.

The retracement might be deeper than expected, but that is not to say the coin wouldn’t recover.

Based on the DOGE candlestick arrangement, price action is laid out in favor of buyers.

In the short term, DOGE/USDT prices might be printing out horizontally with support at $0.15. However, from a top-down approach, the immediate resistance line lies at $0.40.

Determined buyers might search for entries, loading the dips and angling for a possible retest of $0.74 in the medium term.

Before then, how Dogecoin price action acts in the medium term would determine the pace of the uptrend as DOGE lifts off from spot levels.

Technically, DOGE is trending above the 20-day moving average, the dynamic resistance trend line—previous support—for the first time in over a month.

As Dogecoin prices bounce back, printing a series of higher highs relative to the lower BB, DOGE bulls must clear $0.25 and confirm the bulls of late September.

This formation would complete the bull bounce back, a launching pad for a possible wave of higher highs unwinding steep losses of September 20.

Subsequently, this would mark the end of the climactic sell-off, the correction of the July-August uptick instead allowing bulls to pack up in the next pace of higher highs back to $0.35.

Dogecoin Wedge Breakout, Leg Up to $0.35?

Reading from the Dogecoin price action in the daily chart, DOGE prices are trending higher, breaking above a key resistance line.

A trader on Trading View interprets this as a signal that would likely charge the next wave higher.

Notably, the break higher follows higher highs relative to the lower BB, another hint supportive of buyers readying for $0.35—and better.

Nonetheless, as we advance, the DOGE break above ought to be confirmed by Dogecoin prices edging above $0.25—the September 20 highs—ideally with rising trading volumes.

This series of bullish bars from around support is what might gel buyers unsure after the September draw-down.

DOGE Inverted Head and Shoulder Pattern

In the 4HR chart, one trader observes that Dogecoin has formed an inverted head and shoulder pattern.

Technically, this is a signal indicating the end of the bear run and a court open for buyers.

Besides, DOGE prices are also trading above a multi-week resistance trend line.

Even so, as emphasized above, a close above $0.25 may light up demand, the fuel for the next lift-off that might propel DOGE to $0.35.

However, if the Inverted Head and Shoulder pattern fails and DOGE craters below $0.25—last week’s lows, the coin may fall back to $0.15.

DOGE wings Clipped by Dismally Low Trading Volumes

On YouTube, one trader thinks Dogecoin bulls are being held back by low participation levels.

Recent spikes, the last over the weekend, for instance, were with decent trading volumes. However, the follow-through had low participation levels, which in turn pulled prices lower to spot levels.

For buyers to be in control, trading volumes need to expand, propping buyers whose muzzles are on $0.35.

Charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.