Dogecoin is gearing up for a 25% increase, but faces key resistance ahead
Dogecoin has displayed strength in its recent performance, with a 7.5% increase from its local lows below $0.18. Currently trading around $0.19, traders are optimistic about the coin’s potential to further rise and break through the critical obstacle of the $0.20 mark.
Expressions from analysts suggest that Dogecoin’s short-term trend heavily relies on overcoming the resistance zone between $0.20 and $0.22, where the 200-day simple moving average (SMA) poses a significant barrier to upward movement. HODL Gentleman, a crypto analyst, has noted that Dogecoin is consolidating at $0.19 post a pullback and emphasizes the importance of breaching the $0.20 level for a potential trend reversal.
Supporting this viewpoint is data from Glassnode, which reveals a concentration of approximately 24.9 billion DOGE purchased in the range of $0.20 to $0.21, creating a formidable resistance zone. Additionally, Dogecoin faces its next challenge at the $0.23 to $0.24 region, where the 100-day and 50-day SMAs intersect. Crossing the 20-day EMA at $0.22 would signify a decrease in selling pressure and pave the way for further upside towards $0.23 and $0.25 levels.
In the realm of technical analysis, Dogecoin appears to be forming a symmetrical triangle on the 4-hour chart. To validate the bullish outlook, the price needs to consolidate above the upper boundary of the pattern at around $0.20, signaling a potential rally towards $0.246, marking a potential 25% increase from current levels.
Market insights from analyst Trader Tardigrade suggest that Dogecoin is upholding an uptrend pattern after breaking a falling wedge formation, with a near target of $0.216, translating to a 6.5% short-term increase. Boldly forecasting the future, analyst Bitcoinsensus speculates that Dogecoin could reach a price point between $5 to $7 in the long run if historical market cycles are repeated.
As Dogecoin hovers at $0.19, market participants’ focus remains on the $0.20 threshold, symbolizing a potential trend shift and attracting new buyers. Sustaining a price above the 200-day SMA could propel Dogecoin towards $0.25, with a potential test at $0.29. Without confirming a breakout, the market is susceptible to uncertainty, with a downside risk to $0.18 in case of weakening demand.
Overall, the Dogecoin market is poised for continued exploration, with the $0.20 resistance level holding the key to unlock further ascension and mark a significant shift in the coin’s trajectory.
