Bit Origin's buying movement of DOGE could improve market sentiment and create momentum for this Altcoin to break through the important resistance level at $0.29.
On Monday, Bit Origin, a pork processing company and Bitcoin mining firm based in China, confirmed the completion of purchasing 40.5 million Dogecoin (DOGE) to add to its Crypto treasury.
Previously, on July 17, the company announced its ambition to become the largest publicly listed DOGE holder. To realize this goal, Bit Origin has signed capital-raising agreements of up to 500 million USD through stock and convertible debt issuance.
This move not only demonstrates the company's confidence in DOGE but also raises the question: Can the accumulation trend from corporate treasury stimulate demand and drive DOGE's price past its recent peak of $0.29? Let's analyze the technical chart to clarify this prospect.
Dogecoin (DOGE) Price Forecast
DOGE is currently fluctuating in the price range of $0.14 to $0.29 in recent days, reflecting an accumulation pattern with buying activities near support levels and selling near resistance levels. This behavior indicates that the market is in a consolidation phase, with buying and selling forces temporarily balanced in the upper range.
After being rejected at the $0.29 resistance level on Monday, DOGE's price adjusted near the 20-day SMA at $0.21 on Thursday. Buyers are currently trying to initiate a recovery, but will face significant selling pressure around $0.26 and continuing at $0.29.
If buying pressure is strong enough to overcome both resistance levels, the DOGE/USDT pair could confirm the start of a new upward trend, with a technical pattern target around $0.44.
Conversely, if the price fails to maintain above the 20-day SMA and continues to break down, this would indicate that buyers have lost momentum and abandoned their positions. This scenario could cause the DOGE/USDT pair to remain trapped in the $0.14 to $0.29 range for some time.
The 20-day SMA has started to trend downward, with the RSI index in the negative zone, indicating bearish dominance in the short term. Recoveries to the 20-day SMA are likely to face selling pressure, making price breakouts difficult.
If the price continues to be rejected at the 20-day SMA, the DOGE/USDT pair risks adjusting to the nearest support level at $0.21. The first sign of a returning upward momentum will be a stable closing candle above the 20-day SMA, signaling weakening selling pressure. At that point, the pair could recover to $0.27 and continue targeting the strong resistance zone at $0.29, where bulls are expected to encounter significant resistance from bears.
This article does not contain investment advice or recommendations. All investment and trading decisions carry risks, and readers should conduct their own research before making decisions.
