Dogecoin price rose for the second consecutive day as the crypto market rally resumed after the release of the CLARITY Act and the soft consumer inflation report. DOGE rose to a high of $0.1485, its highest point since January 7, and technicals suggest that it has more upside to go.
Why DOGE is Soaring
The token is rising because of the ongoing crypto market rally, which has affected Bitcoin and other altcoin. Bitcoin jumped above the key resistance level at $95,000 for the first time in months. Other top meme coins like Pepe and Shiba Inu have also soared.
There are four main reasons why this rebound is happening. First, this is the January Effect, a situation where financial assets do well in the first few days of the year.
Second, the coin is rising as US inflation softens, with the core Consumer Price Index (CPI) falling from 2.7% in November to 2.6% in December. This decline will likely continue as key prices like gasoline and mortgage rates tumble.
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Third, the rise is because of the upcoming vote of the CLARITY Act, which will simplify crypto regulations. DOGE ETF inflows have jumped by over $4 million this year.
Dogecoin Price Technical Analysis Points to More Upside
The daily timeframe chart shows that the DOGE price formed a giant falling wedge pattern between October and January 1. This pattern is made up of two down-sloping and converging trendlines. The rebound happened when the two lines neared their convergence.
The coin also rebounded after the coin formed a bullish divergence pattern. This pattern normally happens when the Relative Strength Index (RSI) and the MACD indicators are rising as the price fell.
Most recently, the coin formed a bullish flag pattern, which is made up of a vertical line and a descending channel. This pattern often leads to more upside over time.
The coin has moved above the 50-day Exponential Moving Average (EMA), a sign that bulls are now in control. It has also moved above the Supertrend indicator and entered the third phase of the Elliot Wave, which is usually the longest.
Therefore, the token will likely continue rising as bulls target the 38.2% Fibonacci Retracement level at $0.1910. This price is nearly 30% above the current level.
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