Dogecoin Price Hints at a Significant Move This Week
Dogecoin has displayed a robust bullish trend, rebounding from the $0.1 support level. This has generated optimism among investors regarding a potential significant breakout to $1 in the long term.
Following a period of bearish dominance in the cryptocurrency market, Dogecoin bulls, alongside other leading altcoins such as Ethereum, Solana, and Cardano, have made a strong comeback. The defense of the $0.1 support level has infused confidence in holders, leading to increased buying activity in anticipation of a move above $0.2.
Over the last 24 hours, Dogecoin has experienced a 4% surge to $0.1181, with a 9% increase over the past seven days. Coinmarketcap reports, that the coin boasts a trading volume of $625 million, representing a 6% increase, and its market cap has grown by 4% to $17 billion, solidifying its position as the ninth-largest cryptocurrency. The strong defense of the $0.1 support level has provided liquidity for Dogecoin and is expected to fuel an upcoming breakout, potentially pushing the price past $0.2 in the near future.
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The Technical Analysis
The recent 4% price increase has seen Dogecoin reclaim ground above the critical 20-day Exponential Moving Average (EMA) at $0.1156. Additionally, the Moving Average Convergence Divergence (MACD) indicator has sent a buy signal, with the blue MACD line crossing above the red signal line, indicating a bullish momentum. Traders are monitoring the MACD to climb above the neutral region, supported by green histograms, to confirm the uptrend in the coming days.
A daily close above the 20-day EMA would signal a strong bullish comeback, preparing Dogecoin for a major rally. Furthermore, the potential wedge pattern breakout for Dogecoin could result in a significant 71% surge, breaking resistance at $0.2 and potentially propelling the coin to $0.3 and even $1.
In addition, the potential approval of a Dogecoin spot ETF and the overall bullish sentiment in the cryptocurrency market, driven by the recent rise of Bitcoin, could further enhance Dogecoin’s value.
Overall, there is growing confidence in the potential for Dogecoin’s price to continue its upward trajectory, especially if it secures an ETF and benefits from the broader market optimism.
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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
