Dogecoin (DOGE) Price Prediction: Bullish Breakout Could Be in the Cards

Dogecoin has shown resilience in recent market movements, with price action indicating a possible bullish breakout.

Dogecoin (CRYPTO: DOGE) price action is showing resilience in recent market movements, with technical patterns and momentum indicators hinting at a possible bullish breakout.

What Happened: After finding solid support around the $0.1650 mark, DOGE has begun climbing back toward higher resistance levels.

The price recently managed to rise above the $0.170 resistance zone, showcasing renewed buyer interest. Bulls also pushed the price above the 50% Fibonacci retracement level of the downward move from the $0.1843 swing high to the $0.1642 low.

Chart analysis reveals a connecting bullish trend line forming with support at $0.1740 on the hourly chart of the DOGE/USD pair.

Dogecoin is currently trading above both the $0.1750 level and the 100-hourly simple moving average, which are positive technical signals.

The first major resistance for bulls could emerge around $0.1790 and the 76.4% Fibonacci retracement level.

The next substantial resistance is at around $0.1840.

If Dogecoin manages to break above the $0.1840 resistance, the path could open toward $0.1880 and potentially the $0.1920 level. Some analysts believe that if momentum builds, a move toward the $0.200 psychological barrier could be in sight.

Diamond Bottom Formation

A particularly interesting technical development is the formation of what analysts call a Diamond Bottom Reversal pattern. This bullish chart structure typically signals the end of a correction phase and the beginning of a new uptrend.

Crypto analyst Trader Tardigrade highlighted this pattern on the daily timeframe chart. The diamond-shaped pattern, created by converging trendlines, usually follows a period of negative activity before indicating a reversal.

The meme coin previously tested the upper boundary of this pattern and failed, leading to a slight pullback. However, technical analysts predict that when a definitive breakout occurs, DOGE could see a sharp rally, with some targeting the $0.35 price level.

This diamond bottom formation suggests that Dogecoin might be amassing momentum for another upward move. The pattern could set the stage for a bounce to higher levels in the near term.

Momentum indicators are also displaying positive signals despite the current price correction. The Dogecoin Price Momentum Oscillator (PMO) is showing an impending bullish crossover and turning to “green time,” indicating a phase of positive price movements ahead, according to Benzinga’s analysis.

The hourly MACD (Moving Average Convergence Divergence) for DOGE/USD is gaining momentum in the bullish zone, while the RSI (Relative Strength Index) remains above the 50 level, both supporting the case for continued upward movement.

On the downside, immediate support can be found near the $0.1740 level. Should the price fail to maintain this support, the next major level to watch would be around $0.1720, followed by the main support at $0.1650.

Breaking below the $0.1650 support could trigger further decline toward $0.1550 or possibly $0.1450 in the near term. However, current technical setups favor an upward trajectory over continued decline.

The technical picture for Dogecoin remains cautiously optimistic. With multiple bullish indicators aligning, DOGE appears positioned for potential upward movement, although resistance levels will need to be cleared before a sustained rally can take hold.

DOGE’s price action has caught the attention of various analysts who believe it could trigger renewed interest across the meme coin sector. Some traders suggest that should Dogecoin make a decisive bullish move, other meme coins might follow, potentially sparking broader market excitement.

As of the latest data, Dogecoin’s price trades at $0.1748, having recovered from recent lows while building momentum for its next move.

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