Bounces Off Key Reversal Zone
Dogecoin rallied significantly after reaching a key support level, supporting a recent technical analysis' positive outlook. The meme cryptocurrency, which fell sharply this week, has bounced off the $0.16896 reversal zone and is presently rising. Dogecoin, trading at $0.22, looks to be in a Cup & Handle configuration, laying the ground for a rise.
After last week's drop, X's crypto expert noted Dogecoin's approach to a major support level. Dogecoin quickly lost support levels around $0.20 and $0.20 during this market drop. The expert stated that the meme currency is reaching $0.16896, where it has the most chance of rising.
As expected, DOGE established stability before reaching this level and has subsequently trended higher, establishing a Cup & Handle pattern. This bullish pattern generally precedes major breakouts, therefore the analyst is looking for a move above resistance.
Note that $0.29124 is the next critical test. The response to this resistance will determine if DOGE can rebound and reach new highs. A decisive break above this level might boost bullish momentum and price goals.
Next Major Resistance Could Lead Rally to $0.50+
After the recovery from support, the expert predicted a long-term climb to $0.50 and $0.60. Dogecoin's highest price in years would be $0.50, a huge breakthrough over $0.48, where it was rejected in December 2024. Long-term objectives are above $0.6 and a fresh high above $0.737.
However, Dogecoin faces challenges, especially at $0.29124. Even if Dogecoin bulls breach this level, a retest may occur before the following rising leg.
Dogecoin's trajectory also depends on market sentiment. Bitcoin and other major cryptocurrencies are recovering from last week's drop when the US crypto reserve was announced. The meme currency might achieve a new all-time high before the middle of the year in the bullish climate.
#DOGE: #USTarif