Dogecoin has had a strong bounce from the support area at the beginning of the week and has been steadily growing since then. After recovering from the low of $0.215, Dogecoin has been approaching the $0.25 mark for several days. This upward momentum coincides with a new historical peak of Bitcoin, reinforcing the confidence of the entire cryptocurrency market.
The recent break of the resistance level is a sign that the downtrend has been completely replaced by strong buying pressure. The price structure is clearly shifting to positive, and Dogecoin is now on the journey to continue the upward trend since the low of $0.13 established on April 7. The next target is expected to be the peak of the current bullish channel.
Before continuing the upward trend, Dogecoin needs to respond positively in the middle area of the price channel. Earlier this week, the coin returned to test the strong demand area from $0.1950 to $0.2150. This area has held firm multiple times, preventing the price from breaking below, and currently serves as a key structural support. If Dogecoin can maintain above this area, there is a high chance it will advance towards the peak of the bullish channel.
Analyst Melika predicts three important price levels that Dogecoin traders should note as momentum is leaning towards the bulls:
The first target is the mark $0.2530 — this is the peak of the oscillation on May 11.
The second target is at $0.2750 — close to the upper boundary of the current bullish channel.
The largest resistance level is $0.3035 — this was once a strong support area in January before being broken in early February. If Dogecoin surpasses this mark, it will signal a comprehensive recovery and pave the way for higher price levels in the future.
However, if Dogecoin is rejected and falls below $0.1950, this will invalidate the current bullish argument due to violating the demand area as well as the structure of the bullish channel.
Currently, Dogecoin is trading around $0.2447, up 2% in the past 24 hours — a positive signal indicating that buying pressure is returning strongly.