Dogecoin (DOGE) price, along with Bitcoin and other major pairs, was on the descent on Wednesday. However, this morning’s turnaround in the ASIA PAC session has been noticed across the board. The Relative Strength Index (RSI) performed a knee-jerk reaction, and as bulls pierced through the defense of the 55-day Simple Moving Average (SMA), we can expect to see continuation once the US trading session takes over, with DOGE moving 5% higher near $0.084.

Dogecoin Price to Pull the Bear Trap

Dogecoin’s price saw a knee-jerk reaction in both the RSI and its price action this morning, as bulls decided that enough is enough. With a 2.5% profitable candle, the descent from Wednesday got erased, and the 55-day SMA, which was hanging as a cap over the price action, got broken to the upside. However, a few stops will get triggered by bears who are now trying to re-enter their short positions with the current break below the 55-day SMA again.

Why Dogecoin Price is Swinging Higher

Dogecoin’s price has been under pressure for the past few weeks, but the recent jump in the ASIA PAC session has caught the attention of many traders. The bullish move came after a period of consolidation, which allowed the Relative Strength Index (RSI) to reset and create a bullish divergence. The knee-jerk reaction in the RSI was a signal that bulls had taken control, and this was confirmed by the break above the 55-day Simple Moving Average (SMA).

The SMA is a key technical indicator that is watched by many traders. It is a moving average that is calculated by adding up the closing prices of the last 55 days and dividing by 55. It is a useful tool for identifying trends and momentum. When the price is above the SMA, it is considered bullish, and when it is below, it is considered bearish. The fact that Dogecoin’s price has broken above the SMA is a positive sign for the bulls.

Dogecoin Price Prediction

Dogecoin’s price is expected to swing higher as bulls have pierced through the 55-day SMA. The price target for Thursday is set at $0.084. However, there may be some resistance at this level, as it has been a significant level in the past. If the bulls can break above this level, we could see further gains in the coming days.

On the other hand, bears will be looking to re-enter their short positions. They will be looking for a break below the 55-day SMA, which could trigger a sell-off. If this happens, we could see the price fall back to the support level at $0.060.

Conclusion

Dogecoin’s price has swung higher after a period of consolidation, and bulls have pierced through the 55-day SMA. This is a positive sign for the bulls, and we can expect to see further gains in the coming days. However, there may be some resistance at the $0.084 level, and bears will be looking to re-enter their short positions. It will be interesting to see how this plays out in the coming days.