Dogecoin Bullish Trend: 17% Gain Possible if $0.175 Resistance Breaks

Dogecoin has recently formed a bull pennant on its 1-hour chart, a technical pattern that often signals a continuation of an upward trend. Traders are closely monitoring the $0.173 to $0.175 zone, as a breakout above this level could propel the cryptocurrency towards a short-term target of $0.185. This bullish outlook is further supported by a golden cross on the hourly chart, where the 50-hour moving average has crossed above the 200-hour moving average, and a rising Relative Strength Index (RSI).

The formation of the bull pennant follows a sharp upward movement in Dogecoin's price, which has since consolidated within a narrowing range. This pattern is typically characterized by declining volume, which is currently being observed. If Dogecoin closes above the $0.173 to $0.175 zone, the measured move from the pattern suggests a potential short-term target of $0.185.

Dogecoin's recent price action has seen it reclaim support between $0.165 and $0.17 after bouncing from a low near $0.143 on June 22. This support zone had previously preceded a strong rally in May, making it an area of interest for traders. Currently, Dogecoin is trading within a broader range of $0.143 to $0.26.

Technical indicators also align with the bullish outlook. Oscillators are pointing upward, and support at the 200 Exponential Moving Average (EMA) has held, further strengthening the bullish case. The RSI is rising, and the Moving Average Convergence Divergence (MACD) shows a crossover with green bars on the histogram, indicating bullish momentum.

Data from Santiment shows that Dogecoin's Market Value to Realized Value (MVRV) z-score has dropped to 0.241, signaling undervaluation. Additionally, the 365-day Market Value to Realized Value (MDIA) has risen to 152, suggesting that investors are holding onto their Dogecoin for longer periods. This indicates growing investor confidence in the cryptocurrency.