In the face of a challenging BTC price near $68,000 and market volatility surrounding U.S. elections, Dogecoin has emerged as a leading performer. A strong recovery rally is underway, marked by two consecutive bullish candles, indicating that the meme coin is gearing up for a substantial surge.
Additionally, Dogecoin’s reversal trend continues, with higher lows forming and multiple resistance levels being breached. The question remains: could this rapid bullish trend drive Dogecoin to a new 52-week high?
Golden Crossover Likely to Boost Dogecoin Price Further
On the daily chart, Dogecoin’s price activity shows a breakout from a falling-wedge pattern, gaining strength. The uptrend reached 78.60% of the Fibonacci level at $0.18352.
However, a recent market correction led Dogecoin to retest the 50% Fibonacci level at $0.1440. A sudden spike in buying interest has supported BTC’s rise, forming two consecutive bullish candles, boosting Dogecoin’s price by 13.80%. The increase has lifted the cost from a 7-day low of $0.1420 to a present level of $0.16169.
Read also: Dogecoin Market Sees $12.8 Million in Liquidations Amidst Volatility.
The reversal in Dogecoin’s trend appears to be shaping into a rounding-bottom pattern. Notably, the neckline of this pattern aligns with the 100% Fibonacci level at $0.2199.
Key Technical Indicators
- SMA: A bullish crossover is evident between the 50-day and 200-day simple moving averages, signalling the potential for upward movement.
- Stochastic RSI: The K and D lines in the Stochastic RSI are preparing for a bullish crossover, supporting further positive momentum.
Where Is Dogecoin’s Price Heading Next?
With a 2.19% intraday gain, Dogecoin’s price has moved above the 61.80% Fibonacci level, aiming to retest the 78.60% level. While market volatility persists, post-election recovery may improve broader conditions, propelling Dogecoin toward its 52-week high of $0.22899. This scenario could lead to a breakout rally, with an optimistic target of $0.37130 at the 1.618 Fibonacci level.
