Dogecoin (DOGE) has been gaining strength recently, securing gains as it prepares to break out of its falling wedge pattern. The trading volume has also soared, showing increased investor interest.
Rising Trading Volume and Falling Wedge Pattern
DOGE’s 24-hour trading volume spiked 43%, signaling a surge in investor activity. A falling wedge chart pattern suggests a potential 99% breakout. Elon Musk’s occasional endorsements have mainly sustained DOGE’s price. On Monday, DOGE’s price spiked by 4.4%, trading at $0.126 during European business hours. This increase followed Bitcoin’s bounce from a crucial support level, starting an uptrend.
Potential Rally to $0.27
DOGE’s price began to move up recently in line with Bitcoin’s recovery. Since the March mini-bull run, Dogecoin has been in a falling wedge, surging to $0.22. However, this multi-month pattern is nearly ending, promising a 99% breakout. The DOGE 14-day relative strength index (RSI) is at 43 and currently heading up. If it breaks above the midpoint, DOGE’s bullish momentum may increase, potentially reaching $0.27.
Moving Averages and Resistance Levels
The recent price run-up brought DOGE near the 50-day and 200-day simple moving averages (SMA). However, it is still trending below these indicators. Consequently, these indicators provide resistance for DOGE’s price around $0.139 (50-day SMA) and $0.131 (200-day SMA). If DOGE breaks above these levels, it may break from the falling wedge and surpass the yearly high of $0.22.
Strong Support at 0.786 Fibonacci Retracement Level
On the flip side, DOGE’s price hovers at the 0.786 Fibonacci retracement level. This zone has been tested three times in the past four months, making it a robust support level. A bounce from this level could catapult DOGE’s price to the 0.27 Fibonacci extension level around $0.27.
Will DOGE Reclaim $0.73 in H2 2024?
Crypto enthusiasts and traders believe DOGE can reclaim previous all-time highs in 2024. Javon Marks, a crypto analyst on X (formerly Twitter), predicts a 404% run to reach the previous all-time high price. Elon Musk’s endorsements and associations with DOGE have mainly sustained the price. A couple of months ago, DOGE’s price surged after Tesla included it as a payment method. Consequently, the crypto space speculates that SpaceX and X may eventually announce using DOGE as a payment method.
In conclusion, Dogecoin’s price forecast points to an exciting potential for a staggering 2X breakout, signaling robust bullish momentum. This remarkable projection aligns with DOGE’s history of making significant moves and captivating the crypto community.
Read Also: Dogecoin at a Crossroads: Will It Crash to $0.09 or Bounce Back to $0.17?
