Dogecoin (DOGE) Breaks Out, Bulls Target $0.30

Dogecoin (DOGE) is showing strong bullish signs after experiencing a technical breakout, which is igniting fresh investor interest.

Dogecoin (DOGE) is displaying strong bullish signs after a technical breakout sparked renewed interest among investors. Currently, DOGE is trading at $0.2242, with a 24-hour trading volume of $1.79 billion and a market capitalization of $33.47 billion. In the past 24 hours, the price has risen by 2.61%.

Over the broader weekly valuation, DOGE is showing signs of price consolidation close to higher levels, a pattern that usually precedes more vigorous bullish continuation.

Dogecoin Breaks Out, Bulls Target $0.30

On the 4-hour chart, Dogecoin recently crossed above a falling wedge structure around $0.1750. This upside-down or bearish pattern usually predicts the continuation or reversal of an ongoing trend. The crossover was supported by higher trading volumes, validating buying interest.

After the breakout, the price jumped significantly to reach around $0.1900. However, it later showed signs of a possible pullback at $0.1800 as the previous resistance trendline provided support.

Investors following DOGE are focused on the $0.22 zone as an area of consolidation, which is now offering interim support. This zone is significant as it could serve as the platform for launching DOGE’s next upward leg.

The Relative Strength Index (RSI) stands at 61.60, indicating bullish momentum but not yet reaching an overbought position. This is generally seen as an optimal technical position for instruments preparing for a new upmove.

Volume profile also supports the bullish case, with a spike in volume during the breakout and continued interest afterward. A typical pattern post-breakout is a return to the breakout price level, in this case, $0.1800, before continuing higher.

Traders are reportedly positioning themselves at these levels in anticipation of an upside rally to the $0.30 resistance, an estimated 60% gain from the breakout level.

Over the past month, DOGE has been fluctuating between $0.1400 and $0.2000, forming a broad consolidation band. The recent breakout and price action above this range suggest a potential shift in the trend in favor of bulls.

With a strong base forming around $0.22 and resistance levels gradually breaking down, the momentum seems to be shifting. Although there is optimism about reaching $0.30, it’s crucial to remember the volatility of the crypto market.

Chart: 4-hour snapshot of DOGE price action with volume profile and RSI

As we move into the second half of 2023, macroeconomic shifts and a volatile crypto market have kept traders on their toes. Despite Bitcoin’s recent struggles to break above the $30,000 barrier, there are still plenty of opportunities for those who know where to look.

One coin that has been making headlines for its unexpected breakout is Dogecoin (DOGE). After months of consolidation, the memecoin finally crossed above a falling wedge pattern on Thursday.

Technical Analysis: Breaking Down Dogecoin’s Recovery

As the 4-hour chart shows, Dogecoin finally broke out of the falling wedge pattern around the $0.1750 level. This move was supported by higher trading volumes, which is crucial for confirming a breakout.

After the breakout, the price quickly rose to around $0.1900, where it encountered some resistance. However, the buyers managed to push through this level as well, setting the stage for a continuation of the uptrend.

Now, the price has pulled back slightly to retest the previous resistance trendline as support. This is a natural occurrence after a strong breakout, as traders often take some profits along the way.

The $0.22 zone is also an area of interest, as it was a previous level of support and could provide some resistance to the rally. However, if the bulls can manage to push through this level, then the next target is the $0.30 zone.

The RSI is currently in the optimal technical position for an instrument that is ready for a new upmove, with levels around 61.60 showing bullish momentum but not yet reaching overbought territory.

Volume profile also confirms the bullish case, with a spike in volume during the breakout and continued interest in the coin afterward. A typical pattern after a breakout is a return to the breakout price level (in this case, $0.1800) before continuing higher.

Considering past price action, a return to the breakout level is likely before traders begin targeting the $0.30 resistance, marking an estimated 60% gain from the breakout level.

Dogecoin Has Been Consolidating For A Month

Over the past month, DOGE has been trading in a wide consolidation band between $0.1400 and $0.2000