Dogecoin has attracted attention as traders monitor the potential breakout towards higher price levels at the time of the press report. After months of consolidation, DOGE has traded above key moving averages and broken the major resistance trend line.
Liquidation data shows reduced leverage, setting the stage for increased volatility. With historical patterns indicating strong price increases after similar setups, many are watching to see if DOGE can soon rise to $0.65 and beyond.
Technical Indicators Suggest Bullish Momentum
Dogecoin's price shows strong bullish patterns across different time frames as it trades above the 5-day, 10-day, and 20-day moving averages. This structure signals strong short-term buying momentum. Analysts believe it could support price increases in the future if maintained over the coming weeks.
The resistance level near $0.185 remains important, while the support level at $0.175 holds strong, allowing buyers to maintain control.
According to GEMXBT, the Relative Strength Index (RSI) is in overbought territory, and the Moving Average Convergence Divergence (MACD) indicator remains bullish. This indicates strong momentum is occurring.
Analysts warn that high RSI levels could lead to a short-term pullback. But if prices are above the moving averages, there could be a subsequent bullish move for DOGE.
Short-term volatility is likely, but more attention is being paid to other key levels that indicate the next trading direction.
Dogecoin Price Breakout Pattern and Momentum Accumulation
According to an analysis shared by Trader Tardigrade, Dogecoin has recently broken the mid-term resistance trend line that has existed for months. This is similar to the breakout pattern we observed in February of this year when DOGE surged after accumulating significant momentum.
Tardigrade explains, 'There are no signs of a false breakout, and the technical setup appears explosive.' He added that the breakout of the descending wedge pattern and the double bottom accumulation pattern have both been confirmed.
Traders are closely monitoring these patterns as they often foreshadow significant bullish moves in cryptocurrency.
Historical price behavior shows that when Dogecoin builds such growth momentum, significant moves can occur in a short time.
Target prices above $0.28, and even near the all-time highs, have been discussed. As of writing, many are speculating whether the breakout could push this coin above $0.65 and towards the $1.00 mark.
Short-Term Selling Pressure Observed
The market trend shows positive developments while some traders are looking for short-selling opportunities at the time of writing.
Andrew Griffiths has presented a new short-selling trade analysis on DOGE/USD targeting exhaustion signals near daily peaks. Griffiths has set a short position at $0.17342 while targeting a price of $0.16700 along with a strict stop-loss.
DOGE has activated its previous supply zone, leading to liquidation above the most recent resistance. 'The price created a strong reversal after the manipulative buying liquidity trades.'
These opportunities arise as rapid buying activity in the market ends, allowing short sellers to capture small price movements downward.
However, short-term setups do not change the overall bullish outlook unless key support levels are broken.
Despite a negative outlook on DOGE, Griffiths has confirmed that this digital currency continues to maintain its strength as long as essential support levels are held. The current DOGE market operates within a model where short-term trades are executed alongside longer-term trends.
Liquidation Data Supports Bullish Case
Recent liquidation data has added to the growing case for a significant move in Dogecoin. Analysts have observed that leverage in the DOGE market has significantly decreased following a prolonged period of strong liquidations.
This suggests that traders using excessive leverage have largely been wiped out, creating conditions for prices to be less volatile and more organic.
According to data from CoinGlass, the latest increase in both long and short liquidations may signal a return of volatility. CoinGlass indicates that major liquidation phases often reset market conditions, and early increases in liquidations typically precede significant price movements in assets like Dogecoin.
Historical liquidation trends from CoinGlass also indicate that after a period of quiet trading and low leverage, Dogecoin prices tend to rise sharply and quickly. Many traders are closely monitoring these signals as they align with broader technical setups indicating strong moves may occur in the future.
