Meme Coin Dogecoin DOGEUSD May Be Setting Up for a Breakout

Major meme coin and probably the most popular one, Dogecoin DOGEUSD found itself in a technical structure that may be the beginning of new bull momentum

Major meme coin and probably the most popular one, Dogecoin (CRYPTO: DOGE) found itself in a technical structure that may be the beginning of new bull momentum, but there’s one key level standing in the way of any real move: the 50-day simple moving average.

Dogecoin Price Action: Major meme coin and probably the most popular one, Dogecoin (CRYPTO: DOGE) found itself in a technical structure that may be the beginning of new bull momentum, but there’s one key level standing in the way of any real move: the 50-day simple moving average.

Currently, the 50-day SMA is hovering around $0.168, and until this resistance gives way, the potential for a larger breakout is simply sitting in limbo.

Recently, DOGE managed to push above the 23-day SMA, which suggests that short-term bullish momentum may have been restarted as it’s not a massive rally, but it’s enough of a shift to indicate that buyers may be regaining control after weeks of consolidation in a descending trend.

Next, the bulls will aim for the 50-day SMA, a level that could trigger a real breakout and bring with it the possibility of a move toward the 200-day SMA, which stands at around $0.247. This level represents an upside potential of roughly 50% from current prices, which may seem like a significant rally, but it’s not as far-fetched when considering the technical setup.

Adding another layer of conviction to the setup is the potential formation of a golden cross between the 23-day and 50-day curves, which, if it completes, would be a classic technical signal that reinforces the idea that Dogecoin is gearing up for a move to the upside.

However, it’s important to note that this is not the type of setup that guarantees anything immediately. Instead, it’s more about the slow build of structural signals, each one layering on top of the other.

For instance, if the 50-day SMA provides strong resistance and the price pulls back, it could indicate that the breakout has failed, and the consolidation phase may continue.

Crucially, the next few sessions are crucial for the meme coin. A sustained break above the 50-day SMA would turn this quiet consolidation phase into a much more aggressive bullish phase, but without that, it all may become nothing more than a failed breakout.

See More: Top 5 Crypto Influencers To Follow In 2023: Benzinga's Picks