Key Points:
- Dogecoin price has re-entered a historical accumulation zone that previously came before massive rallies.
- Technical indicators and whale activity show signs of an incoming breakout toward $0.73 and beyond.
- Despite resistance at $0.244, DOGE is holding support at $0.238 and is showing bullish strength.
Dogecoin price is back in action after entering a historical support zone that has triggered massive rallies. The memecoin was hovering around $0.2368.
Also, it has generated some buzz among traders and analysts who see signs of an incoming breakout. At the time of writing, DOGE held support and attracted buying interest from large holders.
Tight Range Trading and Strong Support for Dogecoin Price
Over the last 24 hours, Dogecoin price has been trading in a range between $0.234 and $0.244. This 4.12% spread shows consolidation, often a precursor to a significant move.
Despite a final-hour dip from $0.240 to $0.238, DOGE repeatedly bounced off the $0.238 level. This helped to confirm it as a strong support zone.
Dogecoin price opened at $0.238 and closed slightly higher at $0.239. While the gains have been minimal, the repeated support tests show substantial accumulation at lower levels.
Volume Spikes Show Interest
DOGE saw major volume spikes several times on July 27. The most notable of these spikes happened sometime during the late trading hours of Sunday. At that time, volume peaked at 718.4 million tokens.
This was more than double the 24-hour average of 291.8 million. Despite this surge in activity, sellers defended the resistance zone between $0.241 and $0.244.
Even though the final hour brought a 0.83% decline, volume surged above 6 million, showing strong market interest. The strong support and repeated attempts to push higher indicate that the Dogecoin price is building strength. It needs this strength for a breakout.
Analysts See $0.73 as the Next Big Target for Dogecoin Price
Several market analysts say the DOGE has re-entered an accumulation zone between $0.15 and $0.22. This range previously triggered rallies between 900% and 13,000%. It acted as a launchpad for the famous 2021 rally. At that time, the Dogecoin price surged to an all-time high of $0.7335.
Ali Martinez recently pointed out that DOGE has formed four higher lows inside a rising channel dating back to 2015. These higher lows indicate that buyers are stepping in earlier each time. They are creating a strong base for another upward move.
The next significant level is the mid-channel resistance, around $0.73. DOGE may break above this zone. If this happens, it could target the upper boundary of the historical channel between $2.30 and $3.00.
Chart Patterns Show an Incoming Bullish Breakout
The charts are supporting this bullish outlook on major timeframes. Trader TATrader_Alan recently spotted a breakout above a descending resistance line.
This came after a series of lower highs, showing a short-term sentiment change. If Dogecoin price maintains this structure, some of its incoming targets include $0.24 and $0.255.
Other bullish indicators include a double bottom pattern with a $0.25 neckline, a W-shape forming on the weekly chart. It also includes Whale accumulation of over 1.08 billion DOGE in 48 hours, worth around $250 million.
Combined with the rise in on-chain activity and a bullish crossover on the H4 chart, these patterns indicate something huge. Institutional players are growing more confident in DOGE and are pumping funds into it.
The next few days will be crucial for Dogecoin price action. Traders should watch out for whether DOGE holds support at $0.238.
They should also watch out for a break above $0.244, which could confirm bullish strength. Finally, the mid-channel resistance at $0.73 is the next primary target.
If Dogecoin price falls below $0.234, it could be a significant indicator that the bears are back in business. It could also show that they are adding selling pressure to the mix.
On the other hand, volume may continue to rise, and the price holds support. If this happens, a rally toward $0.73 or even higher will become more likely.