Dogecoin Surges Past Bearish Trendline, Enters Upward Channel Aiming for $0.30
Reasons for Confidence
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Recent movements in Dogecoin’s price indicate a strong bullish trend, with the meme cryptocurrency rebounding from support at the week’s outset and gradually gaining upward momentum. In recent days, Dogecoin has been trending towards reclaiming the $0.25 mark after recovering from a low of around $0.215. This upward trajectory coincides with Bitcoin’s rise to record highs, instilling renewed optimism throughout the wider crypto market.
Importantly, technical analysis of the Dogecoin/TetherUS pair on a daily candlestick chart reveals that the coin’s price has entered an ascending channel, suggesting a target of at least $0.3.
Dogecoin Affirms Bullish Breakout as Trendline Falls
Insights from a technical evaluation shared on TradingView by analyst Melika indicate that Dogecoin has surpassed a long-standing bearish trendline, which had served as significant resistance in April. This breakout validates an ascending channel established since late April.
Further Insights
The breakout signifies a complete shift from bearish to bullish dynamics, with the price structure increasingly favoring upward movement. Thus, Dogecoin is set on a course to continue its rise from the $0.13 low recorded on April 7, with the next aim positioned at the top of the ascending channel.
A vital element of this breakout is the response to the channel’s midline, which Dogecoin adhered to carefully before advancing once more. Earlier this week, the coin also retested the demand zone situated between $0.1950 and $0.2150. The inability to dip below this level indicates that it has transformed into a robust structural support going forward. As long as the price remains above this threshold, the likelihood of Dogecoin reaching the upper part of the ascending channel continues to hold.
What Targets Are Ahead for Dogecoin?
With bullish momentum evident, Melika’s analysis identifies three key price levels that may serve as short-term profit zones for Dogecoin traders. The initial target is $0.2530, corresponding to the swing high recorded on May 11. If the bullish trend persists, the subsequent target of $0.2750 may become relevant. Notably, this price point lies at the upper edge of the ascending channel.
Further Insights
Beyond this, a significant horizontal resistance level exists at $0.3035. This point is crucial as it previously functioned as support for Dogecoin in January. However, following a decline below this level in early February, it now represents a potential resistance zone. Breaking through this threshold would not only indicate a complete recovery from the recent decline but also pave the way for advancement to higher price levels.
Conversely, any failure or drop below $0.1950 would negate this bullish outlook, signaling a breach of both the demand zone and the channel structure. Currently, Dogecoin trades at $0.2447, marking a 2% increase over the last 24 hours.
Featured image from Getty Images, chart from Tradingview.com
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