- Dogecoin breaks the bullish wedge pattern at $0.1750, signaling a strong trend reversal with increased buyer volume and market momentum.
- RSI at 61.60 suggests bullish strength without overbought pressure, an ideal setup for a potential rally toward the $0.30 resistance zone.
- Price consolidates above $0.22 support, forming a base that may serve as a launchpad for DOGE’s next upward surge.
Dogecoin (DOGE) is showing strong bullish signs after experiencing a technical breakout, which is igniting fresh investor interest. Currently, DOGE is trading at $0.2242, has a 24-hour trading volume of $1.79 billion, and has a market capitalization of $33.47 billion.
The 24-hour price change is up 2.61%, while the wider weekly valuation is registering price consolidation close to higher levels, which is a pattern that typically precedes more robust bullish continuation.
DOGE Breaks Out, Bulls Target $0.30
On the 4-hour chart, Dogecoin most recently crossed above a falling wedge structure near $0.1750, which is an upside-down or bearish pattern that generally predicts continuation or reversal of an ongoing trend.
The crossover was supported by higher trading volumes, which validated buying interest. The price jumped strongly after the breakout to about $0.1900 before registering signs of possible pullback at $0.1800 to retest the previous resistance trendline as support.
Investors observing DOGE are looking to the $0.22 zone as an area of consolidation, which currently is acting as interim support. The zone is significant in that it could be used as the platform from which DOGE’s next leg higher is launched.
The Relative Strength Index (RSI) stands at 61.60, which is a level that is indicating bullish momentum but not yet in an oversold position. Such is generally viewed as an optimal technical position for instruments ready to embark on a new upmove. Volume profile also confirms the bullish case, with a spike on breakout and continued interest thereafter.
A typical post-breakout pattern is back to the breakout price level, in this case, at $0.1800, before continuing higher. Traders are said to be taking on positions at these levels, waiting for an upside rally to the $0.30 resistance, which is an estimated 60% gain from the breakout level.
Over the past month, DOGE has fluctuated between $0.1400 and $0.2000, establishing a wide consolidation band. The recent breakout and price action above this range suggest a potential trend shift in favor of bulls. With a strong base forming around $0.22 and resistance levels gradually giving way, the momentum appears to be shifting.
Although optimism abounds about reaching $0.30, it is crucial to be mindful of crypto market volatility. Retracements and surprise changes remain likely, particularly considering larger market changes.
Yet, current indicators, past price action, and increased volume indicate that Dogecoin could be starting to find itself in an emerging growth phase, subject to confirmation of support levels in the coming days.
Related Reading | JPMorgan CEO Confirms Clients Can Buy Bitcoin, But No Custody Services Offered