Key Points
- Dogecoin price is strong, above $0.22, and shows multiple bullish breakout patterns.
- Technical analysts predict Dogecoin moves toward $0.45 and even $1 in the current cycle.
- Dogecoin needs to reclaim $0.26 as support to register a rally from current levels.
Dogecoin price is flashing strong technical signals that indicate that a major breakout could be around the corner. Despite recent dips and the ongoing uncertainty across most of the market, DOGE has managed to defend primary support levels.
It is now consolidating for what many analysts believe could be an explosive rally past $0.26, towards $0.38, and then to $1 if strength continues to build.
Bullish Patterns Strengthen Dogecoin Price Outlook
Analysts are pointing out clear signs of a bullish continuation for the Dogecoin price. After crashing by 16% last week, the cryptocurrency successfully retested the $0.24 level and bounced back. In other words, it has confirmed this level as support.
One such analyst, Hailey LUNC, recently drew similarities between the current market outlook and Dogecoin’s breakout. According to the analyst, Dogecoin’s current price action is similar to previous moves where DOGE rallied hard after breaking resistance.
According to Hailey’s analysis, the Dogecoin price has a short-term target of $0.474. This analysis is based on a repeated pattern of breakout and consolidation. She believes that Dogecoin staying above $0.228 is important for this bullish scenario to play out.
Triangle Formation Hints at $1 Target for Dogecoin Price
Trader Tardigrade, another analyst, has even longer-term targets for DOGE. According to the analyst, the weekly charts now feature a setup he calls “Triangle III.”
Like Hailey LUNC’s outlook, Trader Tardigrade’s pattern is similar to formations seen during previous bull runs. According to the analysis, each triangle breakout has led to a vertical price rally.
The macro trendline supporting DOGE since 2014 has remained intact. Also, the Dogecoin price recently bounced from its base. If the pattern repeats, breaking above $0.38 could lead to a rally toward the $1 mark.
Volume is currently slow but rising. This indicates that interest in DOGE is on the rise. Investors could be on the lookout for the next leg up.
Ali Martinez and Dogecoin’s $0.26 Zone
Another strong pattern on Dogecoin’s chart is the current double bottom formation. Previously, on 25 July, Analyst Ali Martinez noted that Dogecoin reclaiming $0.26 as support could take it to $0.46. This level is essential because it has acted as a resistance multiple times.
As of writing, Dogecoin price is ready to reclaim this $0.26 price level. According to Ali, DOGE could look to rebound from its current standing of around $0.22.
Despite the optimistic setup, chart indicators are sending mixed messages. The RSI has climbed above 55, which shows some strength. However, the MACD histogram shows signs of weakness, with a bearish crossover on the daily charts.
Fed Uncertainty and Market Volatility Still Loom
While Dogecoin price is showing strength, it is vulnerable to market risks over the long term. In particular, the Federal Reserve’s upcoming meeting has triggered a risk-off mood in crypto. This has been the cause of the relatively red appearance of the heatmap:
This is without mentioning how over $13.5 million in DOGE long positions were liquidated near $0.225 recently. In addition, the trading volume dropped by over 24% in a single day. This further proves the ongoing investor risk aversion.
More importantly, Dogecoin is tightly correlated with Bitcoin. It continues to dominate the market. In other words, if BTC struggles post-Fed announcement, Dogecoin may face serious headwinds over the coming weeks.