Analyst MikybullCrypto highlights Dogecoin's potential for a $1 surge amid a bullish rising wedge pattern near $0.45 resistance.
Dogecoin remains above 50-day EMA ($0.30326), signaling strong momentum; $0.50 is the next key resistance level to watch.
Flattening OBV suggests waning momentum as Dogecoin consolidates between $0.40 support and $0.45 resistance levels.
According to analyst MikybullCrypto, Dogecoin ($DOGE) is exhibiting a bullish setup that could potentially propel its price to $1. This prediction comes as Dogecoin continues to display strong upward movement despite a recent dip in daily performance. Currently trading around $0.41008, the cryptocurrency is showing signs of consolidation.
Key Resistance Levels
Dogecoin's recent rally, which peaked near $0.45, revealed a clear rising wedge pattern. This formation, defined by upward-sloping support and resistance lines, shows the coin’s critical levels. The upper boundary of the wedge, near $0.45, acts as resistance, while the lower boundary provides support around $0.39 to $0.40.
Source: MikybullCrypto
A breakout above $0.45 could extend Dogecoin's rally toward $0.50 or higher. Conversely, a breakdown below $0.39 might initiate a steeper correction. Notably, the on-balance volume (OBV) indicator aligns with this pattern, showing increased buying activity during the rally. However, OBV is now flattening, suggesting reduced momentum as the price consolidates.
Key Moving Averages Signal a Bullish Trend
Dogecoin's price remains well above its 50-day and 200-day exponential moving averages (EMAs), confirming a strong bullish trend. The 50-day EMA, currently at $0.30326, shows short-term upward momentum, while the 200-day EMA at $0.18418 reflects a long-term uptrend.
Source: BingX
The price, which recently reached an intraday high of $0.42300, indicates consolidation near the $0.40 support level. The next significant resistance lies at $0.50, a psychological level that could drive further gains if breached.
MACD and Volume Analysis Suggest Mixed Signals
The MACD indicator shows the line slightly below the signal line, hinting at weakening bearish momentum. However, the histogram remains near zero, signaling that a reversal could occur if bullish momentum strengthens.
Daily volume, averaging 29.402M, has decreased compared to the November rally. This lower activity suggests indecision among traders as the price consolidates. A breakout above $0.50 or a breakdown below $0.40 will likely require a surge in volume to confirm the move.
