Dogecoin (DOGE) has made remarkable price gains recently, hitting key resistance levels and outperforming Bitcoin and Ethereum. DOGE soon surged by over 3% and busted past $0.1450 and $0.1500 to confirm that investors are buying big in the cryptocurrency. Market watchers are watching if the bullish trend seen in DOGE’s consolidation above the $0.1720 level will be maintained.
Recently, the DOGE has shot past the $0.1650 level and is presently trading above the 100-hourly simple moving average. The price is consolidating around the previous rally’s peak at $0.1796, from which it rallied to a high of $0.1796. Also, a celebrated bullish trend line has formed that braces around $0.1715 on the hourly chart.
Source: CoinMarketCap
Dogecoin Tests Critical Support for Gains Stability
That price’s strength above the 23.6% Fibonacci retracement level of the $0.1275 swing low to $0.1794 high shows that it is solid. Resistance remains near $0.1765, and then $0.1780 is in the frame next. Analysts say a strong close above $0.1780 could see DOGE move to higher resistance levels at $0.1800 and even $0.1850 per coin.
Source: TradingView
If DOGE doesn’t break the $0.1780 resistance, it could retest $0.1715 support. The immediate support also comes on $0.1675, acting as the safety net if the bulls take a break. Further downside could be seen if a move below $0.1630 occurs, taking the price back to $0.1500 or even $0.1420 on a steeper drop.
$0.1630 will be important for DOGE to keep at the main support to retain its gains or not reverse. Below this level, bearish momentum would take over and pressure DOGE to retest lower levels, potentially providing a weak market sentiment. However, technical analysts keep tabs on any downside break, which could derail the current bullish chart.
Dogecoin’s Cup and Handle Pattern Hints Bullish Future
The price chart for Dogecoin shows a ‘cup and handle’ pattern, an age-old technical formation that usually suggests a bullish trend. The pattern, which has been in play for the past few years, means Dogecoin will generally go up over the long term. As DOGE has been consolidating after a steady ‘cup’ rise, the asset is now in the ‘handle’ phase, a typical consolidation phase before an uptrend break.
Source: TradingView
Traders have been drawn to this formation of the DOGE price, viewing it as a sign of things to come—a possible breakout that could see DOGE shoot much higher. Traders will then look to see past key resistance levels around $0.50 and $1 as DOGE completes the “handle”. If a breakout is validated, this pattern could prepare the stage for a bullish period that should maintain the DOGE upsurge until 2025 or 2026.
Strong Support Boosts Dogecoin’s Upward Potential
Dogecoin’s recent rally is driven by strong support levels and a bullish trend along which it rallies and has a good chance of gaining further. Analysts say that if DOGE registers a break above $0.1780, it will face further resistance. Should DOGE reclaim this level, the next big targets for the bulls are $0.1850 and then $0.2000, which would lay an ideal foundation for further upward movement.
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