According to U.Today, Dogecoin (DOGE) is on the verge of a potential price breakout as it tests a significant technical level. The cryptocurrency is currently testing the daily Simple Moving Average (SMA) 200 at $0.1337, with market participants closely monitoring for a possible move that could lead to substantial gains. At the time of writing, Dogecoin has risen by 2.34% in the last 24 hours to $0.1335, reflecting the general upward trend in the crypto market driven by expectations of U.S. Federal Reserve interest-rate cuts.
As Dogecoin tests this crucial level, a decisive break could pave the way for significant upside gains, potentially targeting the $0.138 and $0.0000143 levels. A surge beyond these key levels could signal the end of DOGE's current consolidation phase and the beginning of a new bullish trend. The next resistance levels to watch after a successful breakout would be $0.165 and $0.175. Breaking through these levels could further solidify DOGE's bullish momentum and attract more buyers looking to capitalize on the upward movement.
Crypto analyst Ali suggests that Dogecoin might be repeating a historical pattern given its current price action. In a recent tweet, Ali noted that Dogecoin might be playing out a similar pattern seen before, wherein it consolidates in a descending triangle, experiences a 140% to 230% rally, and then retraces by 56% to 60% before entering a bull run. While the potential for a breakout is enticing, it is important to consider the risks. Failure to break above the daily SMA 200 could lead to declines and further consolidation. In such a scenario, DOGE might revisit support levels around $0.12 and $0.124.
Traders should also pay attention to the overall market sentiment as any positive developments in the broader cryptocurrency market might provide the necessary momentum for DOGE to break above this much-watched resistance level in the very short term.
