Dogecoin price has shown a strong recovery in the last 24 hours, surging 10% after recent market losses. This rebound follows a challenging week for the cryptocurrency, marking a significant turnaround amid renewed bullish sentiment. As the broader crypto market experiences a resurgence, Dogecoin appears poised for further gains, driven by a favorable technical pattern signaling potential price growth.
Bullish Momentum Hints at Dogecoin Price Rally After Dip
A crypto trader has identified a bullish breakout for Dogecoin price on the 4-hour chart, citing a double bottom formation. The technical analysis showcases a significant price move that has caught the attention of market participants.
The double bottom, a popular reversal pattern, suggests a potential upward trend in Dogecoin’s price. The chart reveals two distinct lows, followed by a breakout above resistance. This breakout indicates bullish momentum that could lead to further price gains in meme coins.
Technical indicators point to strengthening market conditions, with buyers showing renewed interest in DOGE. The breakout zone highlighted by the trader has become a focal point for potential upward movement.
Source- Tweet
How High Will DOGE Price Go After Recovery
The DOGE price hovered at $0.34275, making a surge of 10% in the past 24 hours. This follows a broader rebound in the cryptocurrency market after recent consolidations. BTC price has seen a surge above $96k and ETH above $3,300 fueling the optimism
Technical analysis reveals that Dogecoin is currently trading above the $0.300 support level. The next major resistance lies at $0.350, with further targets around $0.500. If bullish momentum sustains, the Dogecoin price prediction could test these levels in the coming sessions.
The Chaikin Money Flow (CMF) indicator stands at 0.03, indicating a mild inflow of capital into DOGE markets. This signals potential investor confidence as the cryptocurrency seeks further upside.
The Relative Strength Index (RSI) shows a reading of 58 on the 4-hour chart. This suggests Dogecoin is approaching overbought territory but still has room for upward movement.
Market sentiment appears optimistic, with increased volume pushing prices higher. However, failure to hold above the $0.300 support could trigger a pullback, potentially invalidating the bullish scenario.
Dogecoin Price chart: TradingView
According to Coinglass, Dogecoin’s derivatives market has witnessed a significant uptick in activity recently. Trading volume surged by 55%, reaching $7.06 billion, while open interest recorded a 15% increase, climbing to $4.07 billion. The volume and open interest increase suggest growing engagement among traders and heightened speculation around Dogecoin’s price movements.
Source- Coinglass
Dogecoin price traders should watch for key levels and market reactions near $0.350. As reflected in the technical charts, a breakout above this level might open pathways to retest the $0.500 resistance.
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