Dogecoin has seen a significant price increase on June 6th, leading the world’s first memecoin to regain some of the losses seen on the previous day. Overall, DOGE gained 8.43% from yesterday’s low and is currently trading at $0.18247.
This pivot shows us two things: For starters, buyers are not interested in letting the price drop below $0.16. Secondly, Dogecoin embarked on a market-wide recovery today, with nearly all digital assets seeing a price increase.
What Caused Today’s Surge
The entire crypto market got some well-needed relief on June 6th. After major losses seen over the past couple of days, post-liquidation stabilities are likely playing a role in driving liquidity back into the market.
On top of that, Elon Musk’s X recently partnered with prediction platform Polymarket to integrate real-time prediction market data. While not directly related to Dogecoin, it still holds relevance to the memecoin’s market movements. Historically, Dogecoin has reacted to Musk’s involvement in crypto-related projects, even when they don’t explicitly mention DOGE.
The Line in the Sand
Dogecoin is trading at a crucial zone of interest right now. The gap between $0.16 and $0.18 has proven time and time again to be a major determinant of price fluctuations, serving as both support and resistance zones throughout history.
This essentially means that Doge’s next movements will be heavily influenced by whether it can hold above $0.18 or if sellers force a retracement below $0.16.
RSI and MACD Show Bullish Momentum
MACD saw a bullish crossover on June 6th, indicating that selling pressure was finally wearing off. This bullish crossover could suggest that momentum is shifting in favor of buyers, reinforcing the recent price recovery.
Meanwhile, RSI has bounced back from oversold levels, seen on June 5th, reinforcing the idea that buyers are regaining control after the recent price slump. The RSI dipped below 30 (as low as 16) on June 5th, signaling oversold conditions, but has since climbed back above 50, indicating renewed bullish strength.
Alongside these indicators, trading volume has surged, supporting the idea that buyers are stepping in with conviction. Dogecoin’s 24-hour trading volume jumped by nearly 35%, showing strong participation in the market and validating the bullish momentum signaled by RSI and MACD.
If bullish momentum solidifies, we could see a new test at the $0.19 zone in just a couple of days. Traders should keep an eye on breakout patterns, particularly whether a handful of strong bullish candles can establish clear closes above $0.18.
However, while RSI and MACD are flashing bullish signs, short-term rebounds can be misleading—especially if volume fades or external factors shift market sentiment. If volume dries up or macroeconomic conditions weigh on risk assets, DOGE could struggle to maintain its upward momentum, leading to a potential retest of $0.16 support instead.
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