Dogecoin has broken out of a 4H falling wedge pattern, closing above trendline resistance at $0.2006.
The breakout projects a 23.02% move, targeting the $0.25 level, with interim resistance at $0.2084.
RSI hovers near 52.84, while MACD shows lagging momentum with histogram still below zero.
Dogecoin (DOGE) has broken out of a multi-week falling wedge on the 4-hour chart, marking a potential shift in short-term trend. The breakout candle, which closed above the descending resistance on August 5, suggests renewed buyer activity.
DOGE was currently trading at $0.2006, down 2.1% in the past 24 hours, while maintaining support at $0.1959. Resistance is noted at $0.2084. The structure of the wedge and the breakout size point to a projected move of approximately 23%, with a potential target near $0.25.
DOGE Breaks Trendline, Targets $0.25 Pending Confirmation
DOGE’s price broke decisively through the descending trendline that had constrained price action since mid-July. The breakout zone was clearly breached with a bullish candle that closed above the wedge, registering a 5.58% increase during the breakout session.
Based on the measured move principle, the height of the wedge projects an upward target of $0.25, a 23.02% potential gain from the breakout level. However, price remains just below short-term resistance at $0.2084.
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Notably, a confirmation candle is still pending. Traders monitoring this breakout may seek further confirmation from the next 4-hour close or a retest of the trendline, which currently aligns with the $0.1959 support zone. The breakout pattern’s validity typically strengthens when followed by successful retests, offering potentially lower-risk entries.
Momentum Indicators Reflect Mixed Sentiment
Technical indicators from the 1-hour chart present a mixed picture of momentum. The Relative Strength Index (RSI 14) shows a reading of 50.63 against a signal line of 41.99. This reading, while neutral, reflects mild bullish pressure building above mid-range levels. Meanwhile, the MACD histogram highlights diverging momentum. The MACD line is at 63.17M, while the signal line trails behind at -159.84M. The histogram value stands at -223.01M.
Source: TradingView
Despite the breakout, the MACD trend suggests uncertainty as recent histogram bars remain under the zero line. Momentum is not yet in full alignment with price action, warranting continued observation of the next candle developments on both lower and higher timeframes.
Short-Term Resistance Eyed After Wedge Reversal
With price action currently consolidating around $0.2006, DOGE hovers just under the short-term resistance at $0.2084. Breaking above this level may open room for further upward moves toward the $0.25 projected target. Until then, any price retracement could test the wedge’s upper boundary around $0.1959 for validation.
The wedge breakout, combined with observed momentum shifts, indicates that the setup remains in focus. However, price must stay above $0.1959 to retain the breakout structure and avoid invalidation.
