Dogecoin shows momentum shift with Golden Crossover

After a period of downtrend, there’s good news for Dogecoin traders as the cryptocurrency has surged out of its downward channel. This breakout coincides with a significant indicator flashing a Golden Crossover on the MACD chart.

Trader Tardigrade sees these two signals aligning as a potential indicator that DOGE is transitioning from a bearish phase to a cautious recovery. As the wider crypto market sentiment is on the rise, the big question now revolves around the sustainability of this breakout.

Looking at Dogecoin’s 4-hour chart, a pattern emerges clearly. The price had been moving within a descending channel for a sustained period, characterized by lower highs and lows, presenting a bearish outlook. However, the most recent candle managed to close above the upper border of the channel, confirming the breakout. Concurrently, the MACD line has crossed above the signal line, forming a Golden Crossover, often considered a marker of mounting bullish momentum.

Key aspects to watch moving forward include vital support zones ranging from $0.145 to $0.150, the breakout zone between $0.162 and $0.165 where DOGE successfully breached the channel, and subsequent resistance levels at $0.175 and $0.185, representing previous reaction highs that could pose as obstacles.

Notably, the MACD histogram reveals diminishing red bars, suggesting a decline in selling pressure. Whenever there is a combination of a structural breakout and a momentum shift like this, it commonly triggers a short-term reversal.

Regarding the immediate future, if Dogecoin manages to sustain levels above $0.16, traders will be focusing on targets at $0.175 and then $0.185. Surpassing those levels could usher in the $0.20 area, a psychologically significant zone that often captures retail interest. Conversely, if the breakout loses momentum and DOGE slips back below $0.155, the bullish case will erode, leading to a potential return to $0.145.

Furthermore, the broader crypto market backdrop is supportive, with Bitcoin climbing back above $65,000, a move that typically benefits high-beta coins like DOGE. However, volume remains a critical factor, as the current level is moderate, necessitating confirmation to determine whether this breakout reflects a genuine trend reversal or merely a temporary bounce.