Dogecoin Bitcoin price is making waves again, with bulls intensifying their rally after a breakout of a key trendline that could spark a new rally. After a period of sideways movement, momentum has shifted in favor of buyers, who now have their eyes set on the $0.1293 target. This breakout could mark the start of a significant uptrend, but the real test lies ahead: can bulls maintain their momentum, or will overhead resistance halt their ascent to new highs?
This article aims to analyze the recent breakout of Dogecoin’s trendline and its potential for further upside. We will look at the technical indicators that are driving the bullish momentum, assess key resistance levels, and determine if the bulls have enough strength to push the price towards the $0.1293 mark.
Over the past 24 hours, DOGE was trading at nearly $0.1068, an increase of 4.68%. The cryptocurrency’s market cap has surpassed $15.5 billion, while the trading volume has surpassed $717 billion. During this period, both walk Market capitalization and trading volume increased by 4.70% and 71.33% respectively.
Technical indicators signal strong upside potential
Recently, Dogecoin price on the 4-hour chart turned bullish after breaking above a key trendline. The price is now consolidating above the 100-day simple moving average (SMA), indicating that the bulls remain in control.
More specifically, positioning above the 100-day moving average often reflects an underlying bullish trend. momentumand if this trend continues, it could pave the way for a new bullish move. However, a breakout of this consolidation zone will be crucial in determining the next leg of the rally.
An analysis of the 4-hour Composite Trend Oscillator shows that the bulls are firmly in control of the market. Both the signal line and its moving average have entered the overbought zone, indicating strong upward momentum. This positioning suggests that the current uptrend still has room to grow, with the potential for Dogecoin price to surge even higher in the near term.
Moreover, on the daily chart, DOGE, after breaking above the downtrend line, is currently attempting a move towards the 100-day moving average. With this recent upward momentum and the breakout of the trendline, the digital asset could extend its rally towards the resistance level of $0.1294.
Finally, on the 1-day chart, the Composite Trend Oscillator also indicates increasing positive strength for the cryptocurrency as the signal crossed the indicator’s moving average SMA and both lines are trying to break out of the oversold zone towards the zero mark.
Upside potential and downside risks: what does the future hold for Dogecoin?
Dogecoin’s recent bullish momentum presents strong upside potential, especially after breaking above a key trendline. If the price can maintain its position above the 100-day moving average, a move towards $0.1293 and other resistance levels seems likely.
However, downside risks remain, including overbought signals on key indicators that could lead to a short-term pullback towards the $0.09149 support level. A break below this support level could signal a deeper bearish trend, leading to further price declines towards other lower levels.
Featured image from Unsplash, chart from Tradingview.com
