Cryptocurrency firm Bit Origin has announced a significant treasury purchase of 40.5 million DOGE tokens.
This move is viewed as potentially bolstering market sentiment and could support a Dogecoin price rally towards key resistance levels, specifically the $0.29 mark. A sustained break above this level is seen by technical analysts as potentially signaling the start of a bullish trend pushing towards $0.44.
Technical indicators currently present mixed signals. The 20-period Simple Moving Average (SMA) is trending downwards, suggesting short-term bearish pressure. Furthermore, the Relative Strength Index (RSI) hovers near oversold territory, indicating potential for a correction if immediate support fails. Critical technical support is currently identified at the $0.21 price level.
Analysts suggest that institutional moves like Bit Origin’s sizable treasury allocation could foster increased demand and liquidity for Dogecoin in the medium term.
Should DOGE manage a sustained close above the important 20-SMA indicator, technical analysts note potential for upward movement towards near-term resistance levels at $0.27 and subsequently the key $0.29 level.