- Dogecoin’s price rises 2.7% to $0.3868, nearing critical resistance.
- RSI shows slight bullish momentum, but indecision persists near moving averages.
- Key support at $0.23 could prevent further downside if resistance holds.
Dogecoin (DOGE) has continued its upward momentum in recent weeks, with its price climbing by 2.7% to trade at $0.3868 over the past 24 hours. The meme coin is now testing key resistance levels, sparking speculation about a potential breakout rally.
Dogecoin Technical Analysis
Market data suggests that Dogecoin is showing signs of recovery after a recent consolidation phase. The price currently sits just below the 50-day Simple Moving Average (SMA) at $0.3868, but it remains above the 20-day Exponential Moving Average (EMA) of $0.34923.
Looking at the Relative Strength Index (RSI), which currently stands at 56.16, the data points to a slightly bullish sentiment. However, the RSI remains in neutral territory, indicating that market participants are still cautious.
Moreover, the price action is hovering near crucial Fibonacci retracement levels, with DOGE rebounding from the 0.382 level at $0.35326. A decisive move above the 0.236 level at $0.4036 could confirm a bullish breakout.
However, if buyers fail to push the price higher, DOGE could face increased selling pressure. Key support lies at $0.23, marked by a horizontal trendline from previous price consolidations.
What’s Next for DOGE? Analysts Predict
A successful breakout above $0.40 could trigger renewed buying interest, potentially targeting higher resistance levels. Conversely, failure to hold above the moving averages could lead to a retest of the $0.30 region or even the critical $0.23 support.
According to popular crypto analyst Ali Martinez, DOGE’s current price action resembles its behavior during the last bull cycle. In January 2021, Dogecoin launched its second major rally after a 56% price correction.
Having undergone a 46% correction over the past few weeks, Martinez suggests that history could repeat itself, where Dogecoin could stage a 700% price pump.
Adding to the bullish sentiment, World of Charts highlighted a key technical pattern on Dogecoin’s chart—a bullish pennant breakout. According to the analyst, Dogecoin’s bullish pennant breakout has already been confirmed. “Expecting another strong bullish wave in the coming days,” he remarked.
Notably, bullish pennants are continuation patterns that typically signal the resumption of an upward trend.
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