The price of Dogecoin (DOGE) has surpassed a critical resistance zone this week, confirming a major technical pattern. Analysts are now turning their attention to the $0.293 and $0.36 marks as potential next bullish targets.
This breakout also coincides with some news from financial institutions, contributing to the long-term adoption of Dogecoin.
DOGE surges after breaking the trend line.
Analyst Ali stated that DOGE is approaching an important supply zone at $0.36. According to his chart based on the UTXO indicator from Glassnode, the largest executed trading volume (calculated based on the actual price) currently lies below the $0.20 price zone. As prices rise, the resistance pressure will gradually decrease due to fewer investors buying at higher prices in that area.
Analysis shows that the last cluster of large volume holders lies in the price range of about $0.36. Surpassing this level will flatten the supply line, thereby reducing selling pressure. Accordingly, the price of DOGE could shift into a higher trading range if buyers maintain control.
Previous resistance levels have been breached as the price surpassed the $0.20 mark. On-chain volume distribution shows that the price discovery process will accelerate once the price exceeds $0.30.
Dogecoin has risen 5% in the past 24 hours, trading at $0.25 at the time of writing. Analysts currently view the $0.293 level as the next technical test, which could pave the way for a 50% rally towards the $0.36 target.
The sell wall at $0.293 could trigger a rapid increase.
Meanwhile, the CW account shared a chart of the sell wall showing that the price of Dogecoin is approaching a large liquidity area.
In his analysis, he pointed out that the strong resistance zone lies between $0.27 and $0.293. This area has repeatedly limited bullish rallies in the past year.
The chart displays red bars, indicating a dense sell order stack at this price level. CW notes that if DOGE surpasses $0.293, no clear sell wall will be visible above. This would pave the way for a strong rally towards a new historical peak.
The trading volume profile confirms strong accumulation activity just below the sell wall. If the bulls continue to dominate, they could swiftly break through this resistance level. A daily close above $0.293 is likely to make market sentiment significantly more optimistic.
DOGE breaks the 400-day downtrend line.
Moreover, ZAYK Charts has confirmed a breakout above DOGE's 400-day downtrend line. This move comes after a series of higher lows and a strong rally above $0.22 recently.
The current price action of this memecoin signals a potential increase of up to 81%, with a target of reaching $0.43. The chart pattern indicates that the price has been consolidating over the long term, thereby strengthening the bulls.
Additionally, the area where DOGE has broken out lies between $0.22 and $0.25. According to the analyst's forecast, this rally could still continue, provided the bulls maintain $0.22 as a new support level. The RSI indicator has not yet entered the overbought region, meaning there is still room for further increase.
Bit Origin Treasury's DOGE reserve plan.
In another notable recent development, Bit Origin (NASDAQ: BTOG) announced plans to purchase $500 million of DOGE. This U.S. listed company intends to issue $400 million in stock and $100 million in convertible bonds. If completed, this will be the first public company to incorporate Dogecoin into its corporate treasury.
This move has helped reinforce long-term confidence in leading memecoins as a legitimate reserve asset. Although the purchase plan is still pending execution, the market has reacted positively.
Meanwhile, Bit Origin's announcement comes at a time when DOGE's technical chart is showing a clear bullish trend. The price breakout combined with support from financial institutions signals that a strong growth phase for this memecoin is approaching. If both trends continue, the price could surpass the $0.36 mark in the coming weeks.
