The probability of the Federal Reserve cutting interest rates is as high as 90%. After Powell hinted at a possible rate cut as early as next month, cryptocurrencies surged last Friday, with Ethereum and Solana leading the way: Ethereum rose over 11%, Solana and Dogecoin rose 8%, Bitcoin gained 3.5% recovering to $116,000, and XRP and BNB rose about 5%.
Powell stated at the Jackson Hole summit that 'risk balance may change'.
This suggests that the central bank may adjust its policy based on economic data and indicates that decisions are entirely data-driven (before his speech, Trump had pressured for a rate cut). The Federal Reserve has kept interest rates at 4.25%-4.5% since December last year, and low interest rates generally favor risk assets like cryptocurrencies.
Dogecoin's bullish trend and breakout potential
Dogecoin's price currently maintains above the rising support trend line, forming a bullish weekly structure. The key target price is $0.43, with Fibonacci extension targets pointing to $1.08. If the weekly closing price breaks above $0.43 with increased trading volume, the price is likely to challenge $1.
The weekly chart shows higher lows, indicating continuous accumulation by buyers, with a bullish market structure. The first resistance level is at $0.43038, with the next target at $1.08453. The weekly candlestick chart shows strong buyer confidence, with a weekly closing price above $0.43 being a key trigger point.
Factors driving breakout potential
The price of Dogecoin is supported by a long-term rising trend line and consistently higher weekly lows, showing a robust upward momentum. If the weekly closing price breaks above $0.43 with increased trading volume, it is expected to challenge $1 in the short term, with Fibonacci targets pointing to $1.08. The breakout needs to confirm the price holding above the trend line, with a correction not breaking key lows, and successfully retesting $0.43.
Traders should wait for confirmation of the breakout before entering, with stop-loss set below the trend line or the most recent low, and position size adjusted according to volatility and macro risk. The duration of the upward movement depends on market liquidity and the overall performance of the cryptocurrency market.
Can Dogecoin reach $1 this year?
Possibly, but it requires a weekly closing price above $0.43, support from trading volume, and a favorable market environment. The Fibonacci target of $1.08453 provides a technical basis, and timing depends on market liquidity.
How to confirm the breakout?
Breakout signals include: weekly closing price above $0.43, increased trading volume, price holding above the trend line, and successfully retesting the breakout level.
How should long-term investors operate?
Consider the rising trend line and higher lows as bullish signals, setting entry and stop-loss points in line with the trend line, while paying attention to volatility risk.
Key points: Dogecoin's price operates within a bullish structure defined by the rising support trend line and Fibonacci targets. Monitor the weekly breakout at $0.43 and changes in trading volume; if the breakout is confirmed, the price is expected to challenge $1 within months. Continuously track price movements and trading volume to find the best entry opportunities.
