Key Insights:
- Dogecoin price eyes a 252% surge after breaking key resistance.
- Bullish flag and trendline support signal more upside.
- A dip to $0.14 may trigger a strong rebound toward $0.30.
Dogecoin (DOGE) price is showing growing strength with analysts pointing to key bullish signals and breakout patterns that may drive the token toward a long-term target of $0.65, a move representing a 252% increase from current levels.
Falling Wedge Breakout Signals Mid-Term Recovery
According to market analyst JavonTM1, Dogecoin has completed a falling wedge pattern on the daily chart. This formation, which is typically seen as a bullish reversal signal, developed over several months before DOGE broke above the upper resistance line.
The analyst explained that Dogecoin had been forming lower highs and lower lows, but this pattern began to compress, signaling weakening bearish pressure. The breakout above the wedge’s upper boundary confirms a change in trend. The relative strength index (RSI) also formed a bullish divergence, where price made lower lows but the RSI formed higher lows, suggesting that selling pressure was decreasing and buying interest was returning.
JavonTM1 added that DOGE could continue this recovery toward the $0.65 technical target, more than tripling from its current price range. The breakout structure and RSI behavior are both used as confirmation of a possible long-term upward move.
Short-Term Rally Toward $0.25 Expected After Bullish Flag
A four-hour bullish flag is in place outlining short-term upside potential. It came after a sharp price rise, then a consolidation that is downward sloping. The breakout over the flag now indicates a chance of an extension of the up move.
According to the height of the former rally, the price projection from the breakout shows DOGE can climb to about $0.25. That would be an increase of approximately 35.78% over the breakout level of $0.18. The analysts mostly measure the height of the flagpole and add it from the breakout point to approximate target levels.
While breakout rallies often get further impetus when correlated with rising volume, the previous chart does not display volume data. It follows that momentum across a number of indicators confirms the scenario with Dogecoin now trading above short term resistance levels.
Long-Term Trendline Remains Intact, Supporting Future Growth
Analyst Ali has noted a significant trendline to the upside, which acted as support since October 2024 on the weekly chart. DOGE is currently at a point just above this trendline, around $0.1698. The line has always held in prior pullbacks, acting as a base to move upward.
The weekly chart has Fibonacci retracements, and the price is right at the 0.5 retracement at $0.1653. The analyst noted that a short drop down to $0.14 may act as a powerful buying opportunity since this level also corresponds with the ascending trendline. If that support holds, a rebound into the $0.30 area is expected.
That rebound would take DOGE to the 0.786 Fibonacci retracement level, which is commonly used to track resistance during long-term recoveries. The chart can be used as an indication that $0.30 might be a major checkpoint before any move up towards higher targets, such as $0.65.
Indicators Point to Strength on the Daily Chart
Dogecoin is currently trading around $0.1823, with a daily gain of 5.99%. Price has broken above the 20-day simple moving average at $0.1743 and heading towards the upper Bollinger Band at $0.1906. Bollinger Bands are expanding suggesting a rise in the volatility, before a larger move is likely.
RSI on the daily chart was at 58.64, and growing momentum has not yet resulted in overbought levels. The MFI is 48.26, close to neutral, and if it crosses 50, there could be an increase in buying pressure. There is a positive Cumulative Volume Delta, and this means that the current buyers are more aggressive.
If Dogecoin maintains this strength and breaks above the $0.19–$0.20 resistance area. It may continue toward the $0.22–$0.25 zone in the short term and $0.65 long-term.
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.