Dogecoin is still trading above $0.40, maintaining a strong upward trend after a 174% increase compared to last month. This popular meme coin is poised to challenge the psychological barrier target of $0.50, as buyers defend critical support levels. With a market value of over $61 billion and a daily trading volume of nearly $9.5 billion, DOGE is moving within an upward channel, and technical analysis indicates a potential breakout.
Dogecoin Price Analysis
Looking at the 4-hour chart, Dogecoin is trading within an upward channel but is struggling to break through the resistance level of $0.44. Nevertheless, the short-term recovery has established a local support trend line, leading to an ascending triangle pattern.
The local trend line and the $0.50 EMA on the 4-hour chart are currently supporting Dogecoin's price. As it approaches the peak of the ascending triangle pattern, a breakout rally seems likely to continue the bullish trend.
While the EMA lines are still aligning positively, indicating bullish momentum, the MACD line and signal line have recently crossed in a bearish direction. This bearish crossover, combined with the declining histogram chart, provides conflicting signals regarding price trends. These mixed indicators suggest a sustainable positive growth outlook but short-term volatility.
Is Dogecoin approaching the $0.50 level?
The resistance level of $0.44 aligns with the 23.60% Fibonacci level. If Dogecoin surpasses this level, the next target will be $0.4944, consistent with the resistance trend line.
Conversely, failing to hold above the local support trend line could lead to a bearish reversal. If support is broken, Dogecoin may retest the 100 EMA line near $0.3936, potentially leading to further declines. Traders should monitor these key levels for indications of market direction.
