Will Dogecoin (DOGE) rally to a new 52-week near the $0.50 psychological mark as it moves within a rising channel?
Amid the broader market trends, Dogecoin continues to maintain its bullish momentum, holding above the $0.40 mark. Additionally, Dogecoin’s market cap remains above $61 billion, having surged by 174% over the past 30 days.
With a trading volume of nearly $9.5 billion, will the bullish trend in Dogecoin push the price past the $0.50 mark? Let’s take a closer look.
Dogecoin Price Analysis
On the 4-hour chart, Dogecoin’s price action is following a rising channel pattern. Currently, Dogecoin is struggling to break above the $0.44 mark within the bullish channel.
This indicates the presence of a strong supply zone, which is limiting the bullish growth. However, a short-term recovery has led to the formation of a local support trendline within the channel, creating an ascending triangle pattern.
Currently, the DOGE price is supported by the confluence of the local support trendline and the $0.50 EMA line on the 4-hour chart. As Dogecoin approaches the apex of the ascending triangle pattern, the bullish cycle is likely to continue with a breakout rally.
The EMA lines on the 4-hour chart maintain a positive alignment, supporting the bullish trend. However, the MACD and signal lines have experienced a negative crossover and are trending downward with increasingly bearish histograms.
Thus, the dynamic moving averages and momentum indicators are offering conflicting signals about the upcoming price trend.
Will Dogecoin Inch Closer to $0.50?
The $0.44 supply zone coincides with the 23.60% trend-based Fibonacci retracement level. Based on these levels, a breakout rally would target the 38.20% Fibonacci level at $0.4944, which aligns with the overhead resistance trendline.
Therefore, a breakout above the $0.44 zone could propel Dogecoin toward the $0.4944 level. In a bearish scenario, a breakdown of the support trendline would test the 100 EMA line near $0.3936.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
