Dogecoin Surges 6.56% to $0.1632 Amid Bullish Momentum

Dogecoin, a popular meme cryptocurrency, has exhibited signs of a potential rally, with analysts predicting a 20% increase in its price. The token recently surged by 6.56%, reaching $0.1632 after breaking a descending trendline. This price movement indicates strength despite broader geopolitical market tensions. The technical setup on the Dogecoin chart reveals a compelling scenario where the token is poised for a breakout if bulls can flip the 5-day resistance level at $0.20. This breakout could potentially drive the price higher, with a target of $0.20 being a key resistance level to watch.

The recent price action suggests that Dogecoin is defying broader market trends and geopolitical uncertainties. The token's ability to surge despite these challenges highlights its resilience and the strong support it has from its community. The breakout above the descending trendline and the subsequent price increase to $0.1632 indicate that bulls are aggressively stepping in to drive the price higher. This bullish momentum could continue if the token can close a daily candle above the $0.17 level, which would trigger a potential rally of 20% to 50%.

Analysts have noted that a potential rally could occur if Dogecoin closes a daily candle above the $0.17 level. This would signal a breakout from the current resistance and could drive the price higher. The on-chain metrics reveal that exchanges have recorded significant activity, which could further support the bullish momentum. The token must first overcome the current resistance level at $0.17 to trigger this rally. If successful, Dogecoin could see a significant price increase, potentially reaching new highs.

Dogecoin’s weekly structure showed some hope in the long term, and consolidation conditions in the coming weeks. Swing traders would be buoyed by the DOGE reaction at $0.142 and could look to enter long positions. Dogecoin retested the $0.142 support level from April, which had been a range low at the time. The weekly chart showed a bullish swing structure, as highlighted by the Fibonacci retracement levels plotted from this swing move’s low and high, made toward the end of 2024. The leading memecoin has not fallen below the $0.089 swing low, but its internal structure was bearish. To flip this internal structure bullishly, Dogecoin must push above the $0.259 local high. The OBV retested a low from March, while the RSI outlined bearish momentum had the upper hand. The low trading volume over the past two months suggested a potential consolidation phase. The March-April range formation was worth exploring deeper.

Previously, the mid-range level was thought to be the top of the range, formed in March and April. The breakout in May reached $0.259, before retracing its rally and reaching $0.142. Extending the range showed that the former range high became the mid-range level, which has served as both support and resistance in recent months. While the OBV was at March lows, the CMF showed strong buying pressure in recent days, with a reading of +0.13. Hence, even though the moving averages could be dynamic resistances, it appeared likely that DOGE would rally to the $0.2 supply zone. The 3-month liquidation heatmap showed that the pocket of liquidity from $0.145-$0.162 has been swept. Smaller clusters of liquidity had built up overhead at $0.173 and $0.182, which could be immediate price targets for the DOGE bounce. The next notable magnetic zone lay at $0.21, which lined up well with the mid-range resistance. Hence, swing traders could look to buy Dogecoin, with a stop-loss at $0.154, with the $0.198-$0.2 region as the take-profit target.