Dogecoin (DOGE) Poised for Takeoff: Break Above $0.20 Could Spark Explosive Rise
Key Takeaways
- Dogecoin (DOGE) rebounded from a key long-term support trendline.
- Dogecoin has formed a brief optimistic double-bottom technical formation.
- Is DOGE able to maintain its upward trend and surpass the resistance level?
In April, Dogecoin's price rebounded, stopping a potential break below a lengthy diagonal support line.
However, while Dogecoin's graph compared with the Bitcoin (BTC) price appears optimistic, the pair versus USD remains uncertain.
The DOGE price must exceed the $0.20 resistance to confirm its bullish trend reversal.
We'll examine the price movement to determine if this breakout will occur.
Dogecoin Price Bounces
The extended outlook for Dogecoin indicates that its price has risen along with an upward-supporting trend line beginning from early 2024.
DOGE has bounced At the trendline multiple times, with the latest instance occurring in April (marked by a green icon), forming a bullish candlestick.
Although the rise has been significant, the Dogecoin price still hasn't surpassed its resistance trend line, one that was established at the beginning of the year.
For the DOGE price to signal an end of its corrective phase, it needs to surpass this resistance level.
Despite the bounce, technical indicators are not yet bullish.
Although the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are showing an upward trend, they remain in bearish territory.
The Relative Strength Index (RSI) is below 50, and the Moving Average Convergence Divergence (MACD) is negative, signaling a bearish market direction.
Consequently, the weekly timeframe fails to validate whether the DOGE trend is bullish or bearish.
What's Next for DOGE?
The wave analysis indicates that DOGE has finished counting as follows: five-wave downward movement (red) Since the peak in December.
Should the count prove correct, Dogecoin’s price has initiated an A-B-C corrective pattern aimed towards reaching the subsequent resistance level at $0.27.
Nevertheless, prior to reaching its destination, DOGE must clear The $0.20 horizontal resistance level, which might serve as the peak for wave A.
Despite this, the technical indicators show a strong bullish trend. Both the RSI and MACD produced bullish divergences (marked orange).
The differences strengthened a bull-like double-bottom formation for Dogecoin.
Therefore, Dogecoin’s price is expected to surpass $0.20 and potentially hit the $0.27 resistance level.
The brief-term perspective supports this as Dogecoin's price operates within an ascending parallel channel , frequently including reparative elements.
The Dogecoin channel includes wave A within this pattern, and breaking below it would indicate that wave B has commenced.
Depending on the price movement, it remains uncertain whether DOGE’s price will establish an additional short-term peak or not.
In any event, a potential failure beneath the channel is probable.
Correction Before Rally
The price of DOGE has exhibited remarkable resilience By rebounding in April, avoiding a collapse due to prolonged support.
Nevertheless, the memecoin hasn't validated its bullish trend reversal as it still hasn’t broken above its primary resistance level.
The current wave analysis indicates that a breakout might happen; however, there could initially be a dip first.
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