In recent months, Dogecoin price witnessed considerable volatility thanks to prevailing market conditions.
As DOGE tested crucial resistance levels, market participants are keenly observing key levels to determine the likelihood of a surge.
Resistance at $0.18 and $0.21
The key resistance levels at $0.18 and $0.21, are in focus as per analyst Ali Martinez’s observations.
These critical market price levels show the past areas where escalating selling pressure caused resistance.
A successful breakout from both resistance areas might indicate that Dogecoin is preparing for a price surge.
Historically, DOGE encountered resistance at these points which resulted in either a pullback or gradual movements above these resistances.
Dogecoin accumulation demonstrates that investors are maintaining their positions at the levels while expecting breakouts.
A breakout above $0.21 could trigger a sustained rally, pushing Dogecoin price above $1.
A J-Shaped Rebound: History Suggests Possible Recovery
More so, crypto analyst Trader Tardigrade examined Dogecoin historical price movements to determine future market performance predictions.
He identified the price movement following a “J-shaped rebound”.
The J-shaped rebound pattern predicts that a surge similar to 2018 could occur after accumulation and retracement.
In 2018, DOGE experienced a period of market stabilization followed by a major increase that achieved new highs.
In addition, the analyst believes it is showing signs of a pattern that has appeared in the past.
The current price action suggests that the meme coin is gaining strength at lower levels and may soon rise after a retracement phase.
According to the analyst’s chart, a breakout from the accumulation stage could signal a rally toward $5.
Dogecoin Price Prediction and Technical Analysis
Considering the technical indicators, MACD line is presently above the signal line, implying that there is a bullish momentum.
Hence, this alignment means that DOGE may rally further if the momentum continues.
Additionally, the MACD histogram is in positive territory. So this means that the buyers are in control of the market.
Moreover, the Bull Bear Power (BBP) indicator supports the bullish sentiments with its value currently positive.
Market momentum leans toward an upward direction, but the power behind the bullish force is moderate.
However, the market may experience a selling pressure if the buying pressure declines.
Dogecoin was priced at $0.1723, up 0.16% in a day. After a recent rebound from $0.1675, its market cap stood at $25.61 billion, trading volume was $1.1 billion at the time of writing.
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