Dogecoin (DOGE), the popular dog-themed cryptocurrency, has rebounded after a weekend decline. At the time of writing, DOGE is trading at $0.2266, marking a 3.18% increase in the past 24 hours and a 4.54% gain on the weekly chart. This uptick follows a sharp drop that briefly raised concerns among traders.
Death Cross Appears but Fails to Derail Momentum
On Sunday, Dogecoin formed a “death cross” on its hourly chart—a technical signal where the 50-period simple moving average (SMA) crosses below the 200-period SMA. Traders typically view this crossover as a sign of short-term bearish momentum. Following the signal, DOGE dipped to $0.215, concluding a three-day losing streak. However, buyers quickly stepped in, absorbing the selling pressure and pushing the price higher from key support levels.
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Despite the ominous chart pattern, Dogecoin bounced back, mirroring gains in the broader crypto and equity markets. Global risk assets surged, with U.S. and European equity futures climbing over 1%, helping cryptocurrencies like DOGE regain lost ground.
Key Levels to Watch: $0.21 Support and $0.26 Resistance
Dogecoin previously touched $0.254 on May 23, only to pull back as traders booked profits. Bears also heavily defended this resistance level. The rebound from $0.215 on May 25 demonstrates strong buying interest, keeping short-term sentiment positive. If bullish momentum persists, DOGE could retest the $0.26 resistance and potentially aim for $0.35. However, resistance at $0.29 could slow the ascent.
Source: TradingView
Conversely, if DOGE breaks below $0.21, it could slip into a range-bound pattern between $0.14 and $0.26. Currently, DOGE trades between its 50-day and 200-day SMAs, located at $0.189 and $0.271 respectively, marking crucial zones for traders to monitor.
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Technical analysts have also identified a bullish “bull flag” pattern on Dogecoin’s chart. This formation often suggests continuation of the previous upward trend. Some bullish projections now place DOGE’s target as high as $0.65, though confirmation is still pending.
Despite short-term bearish signals like the death cross, Dogecoin’s resilience at critical support levels suggests that bullish traders remain active. As long as the price holds above $0.21 and continues to mirror broader market gains, DOGE could remain in an upward trajectory.
