Dogecoin (DOGE) has recently shown significant bullish signals, successfully breaking through the downward resistance trend line on the 1-hour chart, ending the ongoing pattern of 'lower highs' since July 22, and creating a new higher high, officially confirming a trend reversal.
As of now, the trading price of Dogecoin is $0.2364.
This breakout is not coincidental, as it is supported by solid market momentum. According to data, the on-chain trading volume of Dogecoin has increased by 15% over the past seven days, echoing the price breakout and reflecting traders' positive response to the bullish momentum — typically, an increase in trading volume is a precursor to sustained price volatility, further reinforcing the market's optimistic outlook for Dogecoin.
From a technical perspective, the current situation is cautiously optimistic. The Relative Strength Index (RSI) is at 60.46, in the neutral range, indicating there is still room for upward movement; the price continues to stay above the 20-day and 50-day Simple Moving Averages (SMA), supporting the medium-term bullish trend.
However, the Moving Average Convergence Divergence (MACD) histogram shows a slight weakening in price (value is -0.0005), but the overall impact is limited.
The key to the short-term trend lies in breaking through the resistance level. Currently, Dogecoin is facing short-term resistance in the range of $0.25 to $0.27, and whether it can break through and stabilize in this area is a prerequisite for its challenge of the next key resistance level at $0.29. Market analysts are closely monitoring this range to determine if the upward momentum continues or if it enters a consolidation phase.
In summary, the trend reversal of Dogecoin has been confirmed by both breakout signals and increased trading volume. Although technical indicators are slightly diverging, the price remains above key moving averages, keeping the medium-term outlook optimistic. Attention should be focused on the performance within the $0.25-$0.27 resistance range to assess its ability to advance towards the $0.29 target.
