Dogecoin is stirring things up again, with bulls stepping in after a key trendline break that could spark a novel rally. After a period of sideways movement, momentum has shifted in favor of buyers, who now have their sights set on the $0.1293 target. This break could signal the start of a significant uptrend, but the real test lies ahead – can bulls maintain their momentum, or will upper resistance halt their push for novel highs?
In this article, we analyze Dogecoin’s recent trendline breakout and its potential for further growth. We will look at the technical indicators driving the bullish momentum, assess key resistance levels, and determine if the bulls have enough strength to push the price toward $0.1293.
Over the past 24 hours, DOGE traded near $0.1068, up 4.68%. The cryptocurrency’s market capitalization rose above $15.5 billion, and trading volume exceeded $717 billion. During this period, both market capitalization and trading volume increased by 4.70% and 71.33%, respectively.
Technical indicators signal robust growth potential
Recently, Dogecoin price action on the 4-hour chart turned bullish after breaking above a key trend line. The price is now consolidating above the 100-day basic moving average (SMA), which signals that bulls remain in control.
More specifically, positioning above the 100-day moving average often reflects an underlying bullish trend momentumand if this trend continues, it could pave the way for further upside. However, a breakout from this consolidation range will be key to determining the next leg of the rally.
Analysis of the 4-hour Composite Trend Oscillator shows that bulls have a firm grip on the market. Both the signal line and its SMA have moved into the overbought zone, indicating robust upside momentum. This positioning suggests that the current uptrend still has room to grow, and Dogecoin price could rise even higher in the near future.
Moreover, on the daily chart, DOGE, after breaking above the bearish trendline, is currently trying to move towards the 100-day SMA. With this recent bullish momentum and the breakout of the trendline, the digital asset could extend its rally towards the resistance level of $0.1294.
Finally, on the one-day chart, the composite trend oscillator also indicates increasing positive strength for cryptocurrency because the signal has crossed the moving average of the indicator and both lines are trying to break out of the oversold zone towards zero.
Upside Potential vs. Downside Risk: What’s Next for Dogecoin?
Dogecoin’s recent bullish momentum presents robust upside potential, especially after breaking a key trendline. If the price maintains its position above the 100-day SMA, a move towards $0.1293 and other resistance levels seems likely.
However, downside risks remain, including overbought signals on key indicators that could lead to a short-term pullback toward the $0.09149 support level. A breach of this support level could signal a deeper downtrend, leading to additional price declines toward other lower levels.
Featured image from Unsplash, chart from Tradingview.com
