With Bitcoin price reclaiming the $96,000 mark, Dogecoin aims for a bullish recovery. Sustaining dominance above the $0.24 demand zone, Dogecoin nears a breakout rally.
Challenging a long-coming resistance trendline, will DOGE price end the streak of constant bearish reversals? Let’s find out.
Dogecoin Signals a Potential Triangle Breakout
Dogecoin’s price trend reveals a long-coming resistance trendline. With the long coming resistance trendline, DOGE creates a descending triangle pattern with the $0.24 demand zone.
The descending triangle pattern is typically considered a bearish setup. However, a breakout above the resistance trendline could fuel a strong rally.
Within the triangle pattern, Dogecoin reveals a new bullish reversal with the Morning star pattern. The recovery run has fueled an intraday recovery of 0.87%, marking a short-term bounce after a downfall of nearly 8% over the past few days.
The bullish reversal hints at a potential positive crossover in the MACD indicator. With the declining intensity of the bearish histogram, the MACD and signal lines are on the verge of signaling a trend reversal.
Furthermore, the Directional Movement Index (DMI) showcases the VI line witnessing a closing tick, increasing the possibility of a bullish crossover. Additionally, the ADX line reflects a surge in trend momentum, supporting a triangle breakout rally.
DOGE Price Targets
As per the Fibonacci levels, the triangle breakout will likely propel Dogecoin towards the overhead ceiling at $0.28. A bullish extension could lead to the 67.80% Fibonacci level at $0.3469.
If the breakout gains momentum, DOGE could also attempt to reclaim the $0.40 mark. This is a crucial resistance level from previous market cycles.
On the flip side, the crucial support levels for Dogecoin remain the $0.24 demand zone, and the $0.20 psychological mark.
Analyst Insights: Bullish Recovery to $1.50?
Supporting the chances of a bullish recovery, a crypto analyst, Trader Tardigrade, has highlighted the possibility of a bullish reversal in Dogecoin. As per the weekly price chart, the analyst highlights a bullish crossover in the stochastic RSI line on the weekly time frame.
Furthermore, the DOGE price trend maintains a rising channel pattern in the weekly chart, highlighting a strong possibility of a bullish recovery. According to the analyst, the price target for Dogecoin is set above $1.50.