Dogecoin was previously treading lower inside a falling wedge visible on longer-term time frames before it busted through resistance recently. Price is up more than 20% over the past 24 hours as of this writing and may be ready for more gains.
The 100 SMA is below the longer-term 200 SMA on the daily chart, though, so the path of least resistance is to the downside. In other words, there’s still a chance for the selloff to resume.
However, price has moved past the 100 SMA dynamic resistance and is also attempting to break above the 200 SMA as well, indicating a pickup in bullish pressure. Also, Dogecoin may be forming a double bottom reversal pattern with the neckline near 0.004.
Sustained gains past that level could mean a rally that’s the same height as the chart formation or around 0.002. RSI is still pointing up to indicate that there’s some bullish momentum left, but the oscillator has already approached overbought territory. Stochastic is also indicating overbought conditions to signal bullish exhaustion but has yet to turn lower to indicate that sellers are ready to return.
The recent surge is being attributed to news that Dogethereum is ready for launch on September 5. Alex Van De Sande, a core member of the Ethereum Foundation recently tweeted:
The Dogethereum team is still working hard on the bounty, and now they will present work in order to reach a new milestone for 746 ether. All information is being made public beforehand so the public and the judges can make a decision.
This would serve as a smart contract, performing as a bridge that enables transfers between the two chains easily. It is also said to have a range of operations that increases accordingly, enabling it to catch up to Ethereum itself. The Alpha version of the project was already released on August 18th, and the first demo of the bridge will be executed by the team next week.
Images courtesy of TradingView.