The market maintains a bullish stance on Dogecoin, with recent analysis suggesting its price trend is similar to the recently exploded XRP.
Despite a slight decrease of 3.34% in Dogecoin since December, its price remains above $0.40. Following a 160% surge in November, this meme coin is expected to rise significantly again, possibly reaching $1.15.
In a recent report, Dogecoin's current trend is similar to XRP's performance over a short period. In comparison, XRP surged 52% in the past week, reclaiming the $2 mark for the first time in nearly seven years.
It is worth noting that Dogecoin may repeat a similar upward trend. The chart confirms the formation of a low, with Dogecoin maintaining previous resistance levels as support. This phase indicates a classic movement pattern, suggesting that upward momentum may continue.
Dogecoin 1 Hour Chart
$0.48 is an important pivot level, while the $0.55 area aligns with the 1.618 Fibonacci extension line. This is the next major resistance area, and the $0.66 level represents the long-term upward target of the 2.618 extension line.
Dogecoin Ascending Triangle Breakout
Meanwhile, Dogecoin is forming a daily ascending triangle structure. The chart shows that Dogecoin is trading within an upward-sloping trendline and a horizontal resistance level at $0.43.
Interestingly, this bullish continuation pattern suggests that buyer interest is continuously growing near the support level. A daily close above $0.43 is essential to confirm the recent breakout. A few hours later, DOGE recorded this breakout.
After the breakout, it may retest the $0.43 level to validate the support. If successful, the retest could lead to further price increases. However, as of the time of writing, DOGE has fallen below $0.43, currently trading at $0.4046, defending the $0.40 support level.
RSI indicates strong momentum
It is noteworthy that despite the crash, the Relative Strength Index (RSI) on the 4-hour chart confirmed bullish sentiment.
The recent RSI rebound from the oversold region has led to a significant price increase of 40% and 200%, with each rebound accompanied by increased intensity.
If this trend continues, Dogecoin may rise over 200%, with target prices exceeding $1.15. This trend will resonate with Dogecoin's historical performance.
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These reports indicate that $0.40 is the immediate support level for DOGE. However, from an upward perspective, the resistance level is at $0.55, while the Fibonacci extension level of $0.66 is the long-term target. If the momentum continues, the $1.15 target will be achievable.
