Dogecoin Price News: Positive Momentum is Still Strong Despite Today’s Drop – How High Can DOGE GO?

DOGE has gone down by 4% in the past day while Shiba Inu (SHIB), the second largest meme coin by market cap, has retreated by 6.6% during this same period. However, they are both still holding on to their weekly gains as investors gained confidence after the Federal Reserve’s interest rate decision last week.

Although the central bank kept rates unchanged as expected, Chairman Jerome Powell confirmed that its two planned interest rate cuts for this year were still on the table.

Trading volumes in the past 24 hours have dropped by 13.9% across the meme coin sector, meaning that today’s selling pressure is not that strong.

The approval of a Dogecoin-linked exchange-traded fund (ETF) remains one of the most influential catalysts that could propel the value of this digital asset over the next few months.

Bitwise has already submitted an application to get its DOGE ETF approved by the United States Securities and Exchange Commission (SEC) while the NYSE Arca Exchange also filed a motion for a rule change that would allow it to list the vehicle.

Dogecoin is the obvious choice for asset management firms for a first-ever meme coin ETF as this is the largest token in this category with a market capitalization of $28.9 billion and a dominance of 52.1%.

DOGE Breaks Descending Triangle After Double-Bottom is Confirmed

Moving to the charts, Dogecoin (DOGE) broke its descending price channel this week and had been on a four-day winning streak until today. This bullish breakout comes off the hills of a double-bottom pattern that was confirmed after the token bounced off the $0.14 level twice.

The Relative Strength Index (RSI) confirmed this reversal as it crossed above the signal line. Meanwhile, the oscillator has now distanced itself by 25% from its 14-day simple moving average (SMA), emphasizing the strength of the movement.

In addition, the MACD’s histogram has been rising in the past four days and has risen to its highest level in the past two months.

Dogecoin Could Keep Dropping if This Support is Broken

Heading to the hourly chart, the uptrend has been broken and it was already retested and rejected last night. This led to the formation of a descending triangle in the past few hours.

In most cases, this pattern is bearish and would be confirmed if the triangle’s base (the asset’s support line) is broken, as it apparently has been right now. In the case of DOGE, that support is found at $0.1915.

If this break occurs, DOGE could continue its downtrend and drop to the nearest support at $0.1890 and then to the low $0.18s if negative momentum accelerates.

This break would also reverse DOGE’s uptrend and could lead to significant weakness in the near term.

As the prevailing trend in the daily chart is down, traders should be cautious not to get caught up in the continuation of this trend as cryptocurrencies are still exposed to heavy sell-offs until they can reverse this dominant trend.

Momentum indicators are quite bearish as well as the Relative Strength Index (RSI) has dropped below the signal line while the MACD’s histogram shows that negative momentum is accelerating.