Dogecoin has rekindled bullish momentum, surpassing key resistance levels and sparking renewed interest from traders and investors. The latest daily chart shows a classic setup that could lead to a breakout rally if the upward momentum is sustained. Let's analyze the technical factors and their implications for DOGE's price in the short term.
Dogecoin Price Prediction: Will DOGE Break Out of the Accumulation Zone?
Dogecoin's recent price surge to 0.2018 dollars marks a significant shift from the prolonged accumulation phase throughout June. After weeks of sideways price action around the 0.15–0.17 dollar range, DOGE has now surpassed the psychological resistance of 0.20 dollars, a level not seen since early May. The breakout from this horizontal resistance suggests the potential end of the accumulation zone and the beginning of a bullish phase.
This DOGE price volatility is supported by the Heikin Ashi candlestick pattern showing strong green candles with little or no lower wick — a sign of ongoing buying pressure.
What Does the RSI Index Indicate About Overbought Conditions?
The Relative Strength Index (RSI 14) is currently fluctuating around the level of 70.01, placing Dogecoin just above the overbought threshold. Historically, DOGE's price tends to experience strong volatility when exceeding the 70 mark, often rising further before cooling off. However, traders should be cautious here — while an overbought RSI is not an immediate reversal signal, it often indicates upcoming short-term corrections or sideways accumulation.
However, the RSI curve is steep and rising, indicating that momentum is still building. When the RSI trends above 50 with prices continuing to reach higher peaks, it typically signals a healthy bullish phase.
Can the Fibonacci Levels Predict the Next Price Target for DOGE?
The chart also displays Fibonacci extension levels calculated from the last low ($0.147) to the high ($0.208). Based on this:
The level of 0.236 (~$0.20) has just been tested and slightly surpassed.
The level of 0.382 (~$0.22) will act as the next minor resistance.
The level of 0.618 (~0.25 dollars) is a more significant target if the bullish momentum is maintained.
Price target forecast for Dogecoin using Fibonacci Extension:
Let's apply the Fibonacci extension method of 1.618 from the lowest to the highest:
Extension target = Low + (1.618 × (High - Low))
= 0.147 dollars + (1.618 × (0.208 dollars - 0.147 dollars))
= 0.147 + (1.618 × 0.061) ≈ 0.147 + 0.0986 ≈ 0.245
This calculation aligns with the 0.618 retracement zone on the chart — presenting 0.245–0.25 dollars as a realistic bullish target in the near future.
Will DOGE Price Hold Above 0.20 USD or Will It Decrease?
The level of 0.20 dollars has been a significant psychological barrier. Currently, the price of Dogecoin is trading above this level, and the next 1-2 closing sessions will be crucial. If DOGE maintains above 0.20 dollars, this will confirm the breakout. However, if the price falls back below this level with high trading volume, it could trigger a bull trap and a short-term correction to the 0.18-0.185 dollar range.
Key support areas to watch:
Immediate support: $0.192
Stronger support: $0.185
Psychological support and lower low: 0.17 dollars
If it cannot hold at the level of 0.192 dollars, DOGE may have to test the previous consolidation range.
Dogecoin Price Prediction: What Will Happen Next With Dogecoin in July?
If the RSI maintains above 70 for several sessions and the price stays above 0.20 dollars, DOGE's price could rise to around 0.22–0.25 dollars. Increasing volume, candlestick structure, and trend strength currently support this view.
However, traders should pay attention to the following confirmations before entering or doubling down on their position:
At least two closing days above 0.202 dollars
RSI maintains a range of 65–75 with the MACD crossing (not shown here but relevant)
Assuming the current trend continues and Bitcoin does not reverse strongly, the price of Dogecoin could test the level of 0.22 dollars in the next 5–7 days and 0.25 dollars before the end of July.
The price of Dogecoin is showing strong breakout signs after weeks of accumulation. With technical indicators like RSI and Fibonacci extension converging, the likelihood of DOGE reaching 0.22–0.25 dollars is increasing. However, if it cannot hold above 0.20 dollars, the price may test back to the 0.185 dollar level. The coming days will be a key factor in determining whether this breakout will hold or fade.