Dogecoin (DOGE) has exploded with a 26% gain this week, capturing widespread attention as it climbs to approximately $0.2025. This rally comes as DOGE’s trading volume remains robust at $3.99 billion, with a market cap of $29.71 billion, up by 3.72% in the last 24 hours.
As the cryptocurrency edges closer to the $0.2290 resistance level, optimism is building among traders who speculate it could revisit the formidable $0.27 barrier last tested in late 2021. Yet, the question remains: could DOGE sustain its momentum and challenge this barrier, or will profit-taking dampen its upward trajectory?
Dogecoin’s Daily Chart Forms Bullish Golden Cross
Analyzing daily chart patterns, a Golden Cross—a bullish technical indicator where the 50-day moving average crosses above the 200-day moving average—has emerged, reinforcing a long-term uptrend. This formation often signals the beginning of a sustained price rise, aligning with the heightened buying interest in DOGE.
Furthermore, the token’s price has decisively surpassed the 0.786 Fibonacci retracement level at $0.1832, a critical level that often separates minor retracements from a complete bullish reversal. This implies intense buying pressure and suggests that the DOGE cryptocurrency could be poised for an even further upward breakout in the days ahead.
The next targets on the chart are the $0.2290 and, eventually, the highly anticipated $0.27 level. Adding to this momentum, Dogecoin’s weekly price action shows robust support above $0.14, with the 200-day SMA now around $0.1281, providing a solid safety net against possible dips. The recent rally has also placed the DOGE token well above the 0.5 Fibonacci level at $0.1358, further solidifying a bullish outlook.
DOGE On-Chain Metrics Reveal Bullish Support
Adding another layer to Dogecoin’s bullish narrative, the Global In/Out of the Money chart reveals approximately 88.64% of all DOGE addresses are “In the Money” at $0.2019. This means these addresses hold Dogecoin at a price below or equal to the current value.
This percentage further indicates that many holders are already in profit, reducing the likelihood of immediate sell-offs and strengthening the potential for continued upward momentum. Meanwhile, only 9.79% of addresses are “Out of the Money,” with DOGE prices above their initial purchase level. Furthermore, the In/Out of the Money Around Price metric, focusing on the addresses that bought the cryptocurrency between $0.166 and $0.226, shows that 66.46% of these addresses remain profitable.
This suggests the DOGE token has built a strong support base within this price range, providing solid foundations should the price encounter resistance near $0.2290. On the other hand, the data also highlights that 32.40% of these addresses are “Out of the Money” as the meme coin hovers around the $0.2019 level, suggesting possible selling pressure if prices approach specific resistance points.
Dogecoin’s Price Prediction: Will DOGE Revisit the $0.27 Barrier?
Assuming the DOGE token manages to break through the $0.2290 resistance level, it could easily climb to $0.27, a psychological barrier that might trigger a new wave of buying activity. Beyond $0.27, the next critical resistance would likely appear around $0.30, where more traders might look to lock in profits.
However, the cryptocurrency could see a temporary pullback if it fails to surpass the $0.2290 level. In this downside scenario, immediate support exists around the 0.786 Fibonacci level at $0.1832. Below that, the 0.618 Fibonacci level at $0.1537 could serve as a support floor, cushioning the token from a deeper correction.
Also Read: Solana Price Surges 22%; SOL Sets Sights on $250 Next Week
Credit: Source link