Dogecoin rice has attracted the attention of the market as its price rises towards an important resistance level.
There have been strong indications that DOGE price is in an uptrend and may surpass the key level.
Currently the market is observing the price movements in order to establish the ability of Dogecoin to continue the current upward movement.
Dogecoin Faces Key Resistance Levels
At press time, Dogecoin price was trading near the $0.20 resistance level. It has been an important price zone in past cycles.
Crypto analyst Ali Charts identified $0.177 as a key support level and $0.207 as the next resistance. If Dogecoin moves above this range, it could signal the start of a stronger rally.
Another analyst, Trader Tardigrade, concurred. He mentioned that the DOGE seems to be moving in a pattern as observed in the past bullish runs.
However, he also said that Dogecoin is in an “accumulation phase.” One that occurs before a giant upward move in price takes place.
His conclusion is that if this pattern persists, Dogecoin could be gearing up for a big upward movement soon.
Furthermore, according to crypto trader Carl Moon, Dogecoin has been in a falling wedge formation that recently ‘broke out.’ The formation is known to signal a bullish movement.
He also indicated that the price is range-bound in a symmetrical triangle pattern in short time frames like the hourly chart.
This consolidation pattern is most often observed before a breakout, and therefore the current price movement is rather exciting for traders.
Bullish Indicators Suggest a Possible Breakout
Several technical indicators are pointing toward a possible upward movement for Dogecoin. TradingShot, a crypto analyst, shared that Dogecoin has broken above a lower highs trendline that had been in place since January.
According to his analysis, the next target could be $0.80 if the price follows past bullish cycles.
The Moving Average Convergence Divergence (MACD) indicator also supports the bullish outlook.
According to Trader Tardigrade, Dogecoin’s MACD is emerging from a triangle consolidation.
This setup has historically led to price surges, suggesting that the cryptocurrency may be on the verge of a strong move.
The 50-day EMA is currently located at around $0.21 and can be considered as a resistance level.
In such a case, if the price goes above this point, it will be interpreted as a bullish signal.
On the other hand, failing to break the resistance again could mean that the price moves back down to $0.177, which serves as the new support level.
Another bullish pattern that has been noticed is the formation of a cup and handle pattern.
Many analysts have suggested that if the DOGE price manages to go above the $0.185 mark, it may lead to a much bigger movement.
There are even speculations that the token may approach a $2 price if the sentiments persist moving forward.
Whale Accumulation and Market Sentiment
Apparently, whales are adjusting their Dogecoin position and have been accumulating the cryptocurrency.
According to Ali Martinez, increased buying pressure led to the accumulation of over 200 million DOGE over the past two weeks.
This means that bigger investors, such as institutional and high net worth investors, may likely be positioning for a higher price.
Crypto analyst Master Kenobi has forecasted that Dogecoin might hit $1.1 by June if the current upward trend is sustained.
Nevertheless, other factors such as the general market, including the performance of Bitcoin price, will also affect the value of Dogecoin.
If the general market for crypto remains bullish, Dogecoin will likely see increased demand, especially ahead of decision of DOGE ETF approval by the US SEC.
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