With Dogecoin shifting into bullish gears, is a breakout rally beyond $0.30 on the horizon?
As Bitcoin continues its struggle to reclaim the $100,000 mark, Dogecoin is on a recovering path. With a streak of consecutive bullish candles in the 4-hour price chart, Dogecoin is challenging critical resistance levels.
As buyers anticipate a breakout rally, the price targets for Dogecoin extend beyond the $0.30 psychological barrier. Amid growing optimism, will Dogecoin’s price reversal reach its 52-week high of $0.42? Let’s explore.
Dogecoin Price Analysis: A Consolidation Breakout on Horizon?
On the 4-hour chart, Dogecoin’s price trend shows a positive cycle within a consolidation range. This range spans between $0.24 and the overhead resistance at $0.26.
Currently, a bullish reversal within this range is testing the overhead resistance and the 50-EMA line. With seven consecutive positive candles following a morning star pattern, the chances of a breakout rally are significantly increased.
Supporting this upside potential, a bullish divergence in the 4-hour RSI hints at an imminent range breakout. Beyond the consolidation range, a long-standing resistance trend line awaits the price rally.
Moving along with the 100-EMA line, the short-term resistance trend line has resulted in multiple bearish reversals for Dogecoin. Considering the broader market recovery coinciding with Dogecoin’s challenge to the resistance trend line, the breakout now seems likely.
In this scenario, the immediate resistance zones at $0.30 and $0.31 will likely be the next price targets. The 200-EMA at $0.31 coincides with the supply zone.
Dogecoin Derivative Analysis: Open Interest Rises Amid Bullish Sentiment
Amid the rising anticipations of a bullish recovery, the Dogecoin derivatives market has seen a surge in activity. The open interest of Dogecoin has risen by 8.48% to $2.47 billion.
Furthermore, bullish positions have also significantly increased, driving the long-to-short ratio over the past 24 hours to 1.04. While the ratio reflects a neutral and an equal position, the recovery marks significant growth for the bullish team.
The Dogecoin funding rate also maintains a positive trend, sustaining at 0.0072%. Thus, the positive numbers in Dogecoin derivatives, with significant recovery, reflect the Dogecoin traders anticipating a breakout rally.
Analyst Viewpoint
Adding to the chances of an upside rally, Ali Martinez, a crypto analyst, has highlighted a rising channel pattern in the Dogecoin weekly chart. Currently, Dogecoin holds above the 78.60 Fibonacci level at $0.19 after taking a lower price rejection.
As Dogecoin respects the lower boundary of the channel and maintains the bullish pattern, the analysis indicates that the price could rally toward the upper boundary of the channel.
This key resistance aligns with the $0.30 psychological milestone, presenting a significant upside potential.
Dogecoin Price Targets: What’s Next for DOGE?
With buyers anticipating a positive trend in Dogecoin, short-term analysis sets the price target at $0.30, followed by key resistance levels at $0.36.
A crucial supply zone near $0.30 also presents a significant hurdle. On the downside, Dogecoin’s key support levels are $0.24, and the psychological support at $0.20.
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.
