Dogecoin entered August with a recovery momentum that has begun to attract the attention of long-term traders and investors. This recovery is not limited to price volatility but is also supported by stable network performance and favorable on-chain trading conditions. With Dogecoin currently trading at $0.1726, up 5.19% in the last 24 hours and 4.30% over the past week, momentum is gradually shifting upward after a volatile start to the month.
Dogecoin Price Forecast: The technical structure indicates a potential breakout.
Daily chart of DOGE/USD - TradingView
The daily chart shows that Dogecoin has found solid support at the 0.185 level, an area that has attracted ongoing buying interest. From there, the price bounced back above the 20-day simple moving average, which is often the first step in a short-term reversal from bearish to bullish. The current challenge lies at the resistance level of 0.245, which coincides with the upper band of the Bollinger Bands. This level is significant as it represented previous rejections at earlier highs.
Bollinger Bands indicators have started to expand after weeks of contraction. Typically, the expansion of the Bollinger Bands after a rebound at the support level indicates a return to volatility, often leading to a decisive trend. If DOGE can close above 0.245 with high trading volume, the technical setup favors a rise towards 0.285 and possibly 0.305. In a more bullish scenario, a strong breakout towards 0.35 may be possible, especially if the broader cryptocurrency market receives support.
Moving averages and momentum indicators.
The 20-day moving average has recovered, and the 50-day moving average is the next target. Closing above both will confirm a change in market structure and attract more momentum traders. If the 20-day moving average crosses above the 50-day moving average, this bullish crossover will provide additional technical confirmation. On the momentum front, indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) should be monitored for any divergences or confirmations, as they may affirm or challenge the breakout.
The risk level to watch.
This bullish trend will be invalidated if the price fails to surpass the level of 0.245 and falls below 0.224. In this case, DOGE may revisit the level of 0.20, potentially testing the level of 0.185. A breakout below 0.185 would shift market direction towards sellers, delaying any notable recovery.
Dogecoin News: The network base remains strong.
DOGE Activity: Image source: BlockExplorer.one
In addition to the chart, Dogecoin's network performance reinforces this bullish argument. Mining difficulty currently stands at 25.98 million hashes, reflecting a stable mining environment with no signs of capitulation or security concerns. The block height of 5,828,377 confirms stable block production, indicating operational stability.
One of Dogecoin's enduring strengths is its significantly low transaction fees. Even the fastest transactions cost only $0.000060 per byte, making it one of the lowest transaction fees among major cryptocurrencies on the network. This pricing advantage supports its continued use in small transactions, tips, and retail payments, helping to maintain organic demand for Dogecoin regardless of speculative trends.
The interaction between technical and fundamental aspects.
The combination of positive technical momentum and strong network indicators forms a solid foundation for continued upward movement. Price action shows stability at key support levels, while network conditions bolster investor confidence. This alignment means that if technical resistance is broken, the upward move may continue with greater strength than if relying solely on technical momentum.
Dogecoin Price Forecast: Short- and medium-term outlook.
In the short term, breaking the resistance level of 0.245 with a daily trading volume above average is crucial. If this occurs, DOGE is likely to test the level of 0.285 within a week or two, followed by the level of 0.305. If this breakout coincides with the general upward momentum of Bitcoin and Ethereum, it may reach the level of 0.35 before sellers enter. In the medium term, maintaining stability above the level of 0.285 will be critical to sustaining the upward trajectory, which may eventually challenge the level of 0.40.
On the other hand, if the level of 0.245 is not broken or market sentiment changes suddenly, Dogecoin's price may drop again to the level of 0.20 to 0.185, turning the current rise into a short-term recovery rather than the beginning of a long-term bullish trend.
Dogecoin News: The final outlook.
Dogecoin's recovery is at a critical stage. The technical charts indicate that the foundation for a bullish breakout is being built, with moving averages, Bollinger Bands, and support levels trending towards buyers. Additionally, network stability, low fees, and strong mining activity enhance the chances of continued upward movement.
What happens next will depend on how the price interacts with the resistance level at 0.245. If this level is strongly broken, DOGE may head towards 0.30 and beyond. However, if it fails to break this level, the market may experience another correction before the next rise.