Dogecoin, after a prolonged wedge breakout, is testing the 50-day exponential moving average (EMA), signaling significant upside potential.
Following a bullish reversal within a falling wedge pattern, Dogecoin has broken through a resistance trendline that had persisted for five months. This trendline had driven Dogecoin’s decline from its 52-week high of $0.22899 to a recent low of $0.08049 as of August 5.
DOGE Breakout Roll Exceeds $0.10
On the daily chart, Dogecoin’s recovery has pushed it above the key $0.10 psychological level and breached the overhead trendline. Currently trading at $0.10510, the coin has gained 2.35% intraday, forming a new bullish engulfing candle. Over the past 39 days, DOGE’s price has surged by 30.62%, indicating a robust bullish cycle.
Dogecoin Price ChartThe rising bullish momentum in Dogecoin is reflected by a positive crossover between the MACD and signal lines, with increasing positive histograms. However, the key daily EMAs (50, 100, and 200) are currently aligned bearishly, with the 100-day (green) and 200-day (blue) EMAs recently crossing negatively.
Dogecoin’s recovery rally is testing the 50-day EMA (yellow), which is acting as dynamic resistance. A bullish breakout above this average could signal a new buying opportunity for traders.
If the upward trend continues, Dogecoin could target resistance levels at $0.1130, $0.1402, and $0.1739. Conversely, if it struggles to maintain its position above the $0.10 psychological mark, potential support levels are at $0.09783 and $0.09253.
Elon Musks Seeks The Title “Dogefather”
In a recent appearance on the All In Podcast, tech billionaire Elon Musk reignited enthusiasm for Dogecoin by recreating a classic scene from The Godfather with a crypto twist.
Adopting the role of the “Dogefather,” Musk donned a tuxedo and channeled Don Vito Corleone’s iconic tone, even declaring, “Call me the Dogefather.” His charismatic portrayal has significantly heightened bullish sentiment in the crypto community, fueling a surge in Dogecoin demand.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
