Dogecoin and Ether prices soar, signaling positive trend for meme cryptocurrencies
Dogecoin experienced a significant breakthrough recently, exceeding the $0.15 mark in value. This shift was supported by a surge in trading volume, indicating a notable change in momentum after a period of stagnation. Concurrently, Ether (ETH) also saw an 8% increase, highlighting a positive trend for meme-coins.
The rise in Dogecoin’s value was attributed to targeted buying within the meme-coin sector, coinciding with a broader market upswing. This upward movement has positioned DOGE favorably as traders closed out their positions. Moving forward, the key for sustaining this momentum lies in the defense of the mid-range pivot that has been recently regained.
The recent spike in value for Dogecoin was not solely driven by token-specific factors. Instead, it mirrored the increased risk appetite observed in other meme-coins. The overall crypto market also witnessed a collective surge in buying activity, particularly following a breakthrough in CD5 above a crucial resistance level. Traders showed renewed interest in high-beta assets as market volatility subsided over the weekend. Despite the prevailing focus on Bitcoin and Ethereum in ETF headlines, the flow of funds into DOGE was primarily influenced by technical factors and positioning strategies.
In terms of price action, Dogecoin initiated its breakout at 15:00 GMT, surpassing the $0.1424 resistance level. This surge in value was accompanied by a peak trading volume of 1.75 billion during the 16:00 hour, leading to a price peak at $0.1522. Subsequent support levels were established at $0.1463, validating the breakout structure and underscoring the relative strength of DOGE despite a decrease in trading volume. Notably, the price continued to maintain higher lows, indicating underlying bullish sentiment.
From a technical analysis perspective, the breakout above the descending trendline signaled a reversal of the short-term bearish trend. A consolidation band was formed between $0.1509 and $0.1513 after a minor pullback from local highs. The key breakout level to watch is now at $0.1550, with the psychological level of $0.1500 serving as a pivotal support level. In the event of a breach, support levels are stacked at $0.1463 and lower at $0.1424, with any violation posing a risk to the established setup. The overall session range expanded by 8.7%, mirroring the early stages of a trend shift.
Looking ahead, traders are monitoring several key factors. The ability of bulls to retest and sustain levels above $0.1500 will be crucial, as well as the reemergence of accumulation during dips towards $0.1463. Additionally, a subsequent expansion in trading volume is necessary to challenge the $0.1550 level. Failure to maintain momentum could result in a pullback into the descending trendline, trapping latecomers chasing the breakout.
