Dogecoin (DOGE) has recently seen a massive price increase of around 12%. The surge has pushed the memecoin to $0.068, sparking interest in the cryptocurrency community.
Dogecoin co-founder Billy Markus is eyeing a short-term bull run. His reaction to the price increase was a brief but affirmative “that’s awesome.”
However, despite the rapid price increase and Marcus’s positive reaction, much of the cryptocurrency trading community seemed indifferent to the upward trend.
Source: TradingView
The lack of widespread reaction can be attributed to a variety of factors, such as market fluctuations or the unpredictable volatility of memecoins.
From a technical analysis point of view, Dogecoin is showing signs of struggling to break above important resistance levels. Despite the bullish activity, DOGE is yet to convincingly break above the 50 EMA resistance level.
This resistance has been tested at least three times, with the price forming significant shadows above it. However, these attempts were unsuccessful, and the price fell back below the 50 EMA.
The 50 EMA is a technical analysis tool that is often used to generate the average price of a coin over the past 50 periods, providing traders with insight into potential support and resistance levels. Trading above the 50 EMA is generally considered bullish, while trading below the 50 EMA is considered bearish.
While Dogecoin’s upside is compelling, its inability to breakout and hold above the 50 EMA suggests a degree of indecision in the market. Traders may be cautious as the coin has underperformed over the past few months and there is a high probability of a correction after the strong bull run in June.