Dogecoin Soars As It Fights A Key Resistance Level: Can The Crypto Regain Support?

Dogecoin DOGE/USD crashed during Sunday's trading session, climbing more than 16% before calming down to trade around 8% at the time of putting in press. The crypto struggled to regain an important support and resistance level at $0.083.

Dogecoin's surge was helped by Bitcoin (CRYPTO; BTC) and Ethereum ETH/USD, which temporarily broke above key psychological resistance levels at $25,000 and $2,000 , respectively, at the beginning of the trading period.< /p>

Unlike Ethereum and Bitcoin's northward jaunts, Dogecoin made its big leap into massive volume, which may indicate that a high level of interest has returned to the crypto.

Volume is the total number of shares traded in a security during a given period. It is a momentum indicator used by technical traders to gauge the overall interest and sentiment of a stock or crypto. Volume is also used as an indicator to confirm a trend or a change in trend.

When bullish trading volume increases, the price of crypto generally increases, while increasing bearish volume, when a stock is in a downtrend, generally drives the price down . In contrast, below-average trading volume usually indicates consolidation, leading to sideways crypto trading.

When a bullish trader has a position in a security, the drop in volume can act as a sell signal as it indicates that the stock is short of buyers. When the increase in volume eventually pulls the crypto out of the sideways range, bullish traders may choose to enter a position if the crypto begins to rise. A bearish trader in a short position can watch for diminishing bearish volume to indicate that the crypto is short of sellers and a reversal may be in the cards. If large bearish volume ends up rallying and breaking the crypto out of a consolidation pattern, bearish traders may choose to go short.

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The Dogecoin chart: Large bullish volume in Dogecoin pushed the crypto up from the latest high, confirming that the uptrend is currently recognized by the algorithms. The most recent low in the uptrend was printed on August 12 at $0.069 and the last confirmed high was formed at $0.0755 the day before.

Dogecoin is also trading above an ascending trendline on the daily chart. The last time Dogecoin tested the zone as support was on August 10, and the crypto reacted bullishly to the level. When Dogecoin moves back to form its next low in its uptrend, traders can watch the crypto to print a bullish reversal candlestick on the trendline. At press time, Dogecoin's trading volume on Coinbase stood at around 769 million, compared to a 10-day average of around 276.76 million. Bullish traders will want to see continued momentum on above-average volume during Monday's 24-hour trading session to confirm that interest is returning to the crypto. If Dogecoin closes the trading day near its daily high, the crypto will print a bullish engulfing candlestick on the daily chart, which could indicate that higher prices will return during Monday's session. If the crypto closes the session with a noticeable upper wick, it could indicate that a retracement is in the cards. Dogecoin has resistance above $0.083 and $0.097 and support below at $0.075 and $0.065.

See also: Shiba Inu makes massive move as crypto soars 28% in 24 hours

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