Dogecoin has rallied 5% this week, testing a key resistance level amid rising bullish momentum. Will a breakout above $0.25 propel DOGE toward the $0.50 mark?
With Bitcoin trading near its all-time high, meme coins are exhibiting a bullish trend. Dogecoin, in particular, has surged more than 5% this week as part of the ongoing market recovery. The coin now hints at a potential breakout from a bullish pattern and a key resistance trendline. Could this breakout trigger a 2x rally in DOGE?
Dogecoin Price Analysis
On the daily chart, Dogecoin has rebounded from the 200-day EMA at $0.2177 this week. Currently, the price is forming its fourth consecutive bullish candle, challenging a long-standing resistance trendline that has been in place since December 2024.
The ongoing recovery is also testing the $0.25 supply zone, which acts as the neckline of an inverted head-and-shoulders pattern. This multi-month pattern suggests a potential 95% surge upon breakout, calculated by adding the depth of the pattern to the breakout point.
Notably, the 50% Fibonacci retracement level at $0.2566 closely aligns with the neckline, strengthening the case for a bullish breakout. The 50-day and 100-day EMAs are converging, suggesting a possible bullish crossover. The proximity of the 200-day EMA also hints at a potential golden crossover. Moreover, the daily RSI is approaching the overbought zone, indicating strong bullish momentum.
DOGE Price Targets
Based on Fibonacci levels, the triangle breakout rally will likely surpass the 100% extension at $0.4679 and target the psychological $0.50 level. The uptrend could further extend to $0.64, as projected by the 1.272 Fibonacci extension level.
Conversely, failure to break above the neckline could lead to a retest of the 38.2% Fibonacci level at $0.2227. This would likely invalidate the bullish pattern and could extend the pullback toward the 50-day EMA near $0.20.
Bulls Dominate Dogecoin Derivatives
As Dogecoin stands at a critical juncture with the potential for a 2x rally, anticipation in the derivatives market has surged. The Dogecoin funding rate has risen to 0.0152%, indicating strong bullish activity.
Open interest in Dogecoin has increased by over 7%, surpassing the $3 billion mark. This highlights robust trader participation amid growing bullish sentiment.
Finally, the 12-hour liquidation data shows a $5.47 million loss, with short liquidations accounting for $3.6 million, further suggesting a bullish bias. A similar figure is visible on the 24-hour timeframe. This data indicates a strong possibility of a new, leverage-driven rally in the meme coin.
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.
