Dogecoin (DOGE) is currently trading above the important support level at $0.19, establishing a solid foundation for the short-term upward trend. Although the price has dropped about 7% in the past 24 hours, the recovery from the $0.19 level still reflects a positive signal in the volatile cryptocurrency market. After a strong 14% increase last week, DOGE continues to remain stable, reinforcing the belief that the $0.19 level could become solid support for the price in the future.
Change in market structure
The recovery from the $0.19 level is not just a short-term price increase but also marks a change in market structure. Previously, the $0.19 level had acted as a resistance level in May and early June. However, breaking above this level now indicates that DOGE has transformed it into a new support area, raising hopes that the price could continue to rise. According to analysts, the next price level that DOGE could aim for is $0.25 if the upward trend persists.
The DOGE price chart shows the formation of higher lows, a clear signal of a short-term upward trend. Notably, DOGE is trading within a stable price channel, with prices continuously bouncing off the support level of $0.19. As long as DOGE holds this price level, reaching the target of $0.25 is entirely possible.
According to analyst Ali Martinez, a crucial factor will be trading volume. If this volume continues to rise sharply, the likelihood of DOGE's price breaking through resistance levels and reaching the target of $0.25 is very feasible. However, if the upward momentum weakens and DOGE falls below the $0.19 level, the current upward structure will be broken, and the price could retreat to lower support levels.
In addition to the support level of $0.19, another important level that traders need to monitor is the weekly resistance threshold at $0.213. A break and close above this level could be a sign that the upward trend will continue, paving the way for higher price targets such as $0.34 and $0.48. Conversely, if the price fails to break through the $0.213 level, DOGE could retreat to the lower support area between $0.186–$0.182.
Momentum indicators and user situation
The Bollinger Bands (BB) indicator is showing that DOGE is likely to experience significant volatility, as the current price is near the upper band of the BB, indicating strong upward pressure. At the same time, the price remains above the 20-day simple moving average, suggesting a solid local support level.
The RSI index on the daily chart is at 58, close to neutral, indicating that DOGE could continue to rise if demand increases, but there is also a possibility of encountering a slowdown in the short term if a downward trend begins to appear.
Data from Glassnode also indicates that the number of active DOGE addresses reached 68,268 on July 14. Although not peaking as high as in previous market cycles, this surge suggests that users are paying more attention to Dogecoin, especially after significant price fluctuations.
In summary, DOGE is currently in a short-term upward structure, with strong support at $0.19 and the next price target at $0.25. While there are factors to watch such as trading volume and resistance at $0.213, DOGE is still maintaining its upward momentum and is likely to continue rising if it can hold the current price levels. However, a drop below $0.19 could break this structure, causing the price to return to lower ranges.
