Dogecoin's price momentum is heating up as it takes another step towards the key level of $0.18, a level that previously set a historic high for the popular meme coin. The recent price increase of Dogecoin has attracted the attention of both traders and long-term holders, sparking speculation about a potential breakout that could lift it to new heights. With increasing bullish pressure, there is widespread discussion about whether Dogecoin has the strength to overcome its resistance and finally establish a new milestone.
This article aims to explore the recent price surge of Dogecoin and assess its potential to overcome the key resistance level at $0.18. Through technical analysis and a look at current market sentiment, this material provides insights into the driving forces behind the DOGE rally and evaluates the chances of a breakout.
Bullish momentum is building for Dogecoin's price
DOGE consistently holds its position above the 100-day simple moving average (SMA) on the 4-hour chart, signaling a sustained upward movement and a strong bullish foundation. This stable holding above the SMA line indicates a supportive trend for further gains as buyers continue to show resilience in defending key levels. Recently, Dogecoin's price bounced off the support level of $0.149, boosting positive market sentiment and confirming strong buying interest at this critical point.
Analysis of the 4-hour Relative Strength Index (RSI) shows renewed bullish potential as the RSI has risen from the oversold zone above 50%. Currently, it stands at 65%, this upward shift suggests that buying momentum is gaining strength, indicating a transition from a bearish phase to a more neutral, possibly bullish position.
Additionally, the daily chart shows that Dogecoin is experiencing strong upward movement, as evidenced by a series of positive candles suggesting sustained buying pressure. This optimistic trend is reinforced by DOGE being above the 100-day simple moving average (SMA), a key level signaling ongoing strength in the current uptrend. As Dogecoin's price maintains this trajectory, market sentiment becomes increasingly bullish, creating favorable conditions for further gains as it approaches the resistance level at $0.18.
Finally, the RSI on the daily chart is currently at 65%, recovering from a previous drop to 56%. If the RSI continues to rise, it could signal increased strength in DOGE's price action. Moreover, maintaining a position above the 60% mark could significantly increase the likelihood of continued bullish momentum and potential breakouts, reinforcing positive sentiment for the asset.
Will DOGE break through or retreat?
Dogecoin's price is approaching a critical resistance level at $0.18, raising speculation about its potential for further gains. If DOGE successfully surpasses this threshold, it could pave the way for a significant rally, potentially reaching new highs, possibly leading to a new record.
However, if DOGE fails to overcome resistance, it could lead to profit-taking, which may cause a drop to the support level of $0.149 and other additional downside targets.
The publication 'Dogecoin Price Surge Gains Popularity, Will DOGE Break the $0.18 Level?' first appeared on Crypto Breaking News.