Key Insights:
- DOGE’s PMO turns green, suggesting early bullish momentum.
- The price holds $0.167 support, and a rebound toward $0.183 is possible.
- The weekly chart shows a long-term cup pattern forming.
Dogecoin price has shown early signs of a momentum shift as it tests a key support level. Technical indicators are turning positive, suggesting potential upward movement. The Price Momentum Oscillator (PMO) shows positive momentum that experts consider a bullish indicator.
Traders are monitoring the $0.167 support zone to determine the next move of the DOGE price. A bounce could signal recovery, while a breakdown may lead to further decline.
PMO Bullish Crossover Suggests Momentum Shift for Dogecoin
The momentum indicator of Dogecoin shows major shifts within its 3-day analysis period. The PMO has demonstrated a clear bullish crossover, signaling upward movement in DOGE price trends.
The PMO signal line has recently moved above its main line. Additionally, the red histogram turned green after months of monitoring, indicating a potential momentum shift.
The PMO crossover indicates an uptrend beginning, according to market analyst TATrader_Alan. Recent DOGE data proves this particular indicator pattern typically indicates upcoming significant price surges.
After a prolonged correction during early 2025, the indicator signals improved buyer-side momentum. The crossover indicates a forthcoming trend reversal but cannot establish price increases independently.
Traders need to confirm the breakout through rising trading volume and resistance level breaches for their setups to be valid.
Dogecoin Holds Above Key Support at $0.167
Dogecoin is now sitting near the $0.167 support level on the 4-hour chart. Previous price drops briefly touched this support area, showing it acted as a short-term defense. Buyers tried to push the price back up, as the wicks below the support line demonstrated.
Dogecoin will rebound if support continues at $0.167 and hit targets near $0.175 and $0.183. Historically, $0.167 marked resistance points when the price pulled back during April.
The bearish pressure maintains its grip on the market according to the short-term trend. However, lower highs and lower closes persist.
DOGE price will decline to $0.164 or lower if it drops below $0.167. Dogecoin’s future direction within the near term will materialize from events occurring at this point.
Long-Term Chart Forms Bullish Cup Pattern
Dogecoin is forming a large cup on the weekly timeframe. This chart pattern develops when a market forms a rounded bottom over an extended period, followed by a more minor consolidation near the top, commonly called the “handle.”
DOGE price has traded between $0.05 and $0.20 for most of the past year. Price levels around $0.17 indicate the potential for forming a handle section within this cup-shaped pattern. A move above $0.70 would confirm the bullish setup and could start a substantial price rise.
This structure is often considered a continuation pattern in technical analysis. However, a confirmed breakout above the upper resistance level is required to validate the setup.
Funding Rates Show Long-Biased Trader Sentiment
The derivatives market reports favorable interest rates for DOGE throughout its price fluctuations, including market downtrend periods.
Since early March, the open interest-weighted funding rate has remained above 0%. This suggests traders are holding more long positions than short ones.
Favorable funding rates suggest traders expect the Dogecoin price to rise. This is despite its decline from mid-April to early May. Market traders continue to display favorable funding rates toward Dogecoin because they expect its price to rise.
During brief periods when Dogecoin’s funding rate turned negative, price recoveries quickly followed. This suggests a strong market reaction to shifts in funding sentiment. These dips were short-term and didn’t show strong bearish sentiment.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.