Dogecoin (DOGE) Breaks Free From Resistance, Setting Stage for a Strong Rally
DOGE price makes a significant breakout, potentially signaling the start of a bull phase. Further confirmations is needed.
Key Takeaways
- DOGE breaks out a falling wedge, signaling bullish momentum.
- The price target is set at $0.13, pending further confirmation.
- The upward trend strengthens after bouncing from the $0.09 support level.
The Dogecoin (DOGE) price has been in a falling wedge for around six months, declining by 61% since its yearly high. However, it gained traction as it approached the wedge’s apex and broke into the upside.
Considering the longevity of this structure and the amount of the decrease seen, today’s breakout could be the first sign of an incoming rally as a new bull phase starts.
DOGE Price Analysis
On March 28, DOGE reached its yearly high of $0.22, completing a five-wave pattern that began in October 2023. Following this, the price entered a prolonged correction within a falling wedge.
DOGE retraced to the 0.768 Fibonacci level during the correction, around $0.09, aligning with a previously established horizontal support zone. After bouncing off this level, the price met the descending resistance again on Sept. 14, where it was rejected.
Read More: Dogecoin Price Prediction 2024: DOGE Price Analysis
Despite the minor setback, the overall outlook for DOGE remained bullish, as the price made a higher low on the following retracement.
Since Sept. 16, a new advancement to the upside has occurred, leading to a breakout above the descending resistance and potentially signaling a new bullish phase.
DOGE could be ready for a major rally but still needs further confirmation.
DOGE Price Prediction
Zooming into the hourly chart, we can see that the price rose from Sept. 6 to 13, forming a five-wave impulse followed by a three-wave decline. These could be the first two sub-waves of the starting five-wave move from a higher degree count.
As DOGE made a new upward advancement, its wave three could have started developing with its two sub-waves already behind us. The price made a breakout and a retest of the broken resistance for support.
Since it is currently on an upward trajectory, more upside is expected. If our projection is true, DOGE is now set to reach a target of $0.13 at the 1.618 Fibonacci extension level. Although this is highly likely, the price hasn’t decisively moved above the $0.11 territory where it faced horizontal resistance.
Doing so will confirm the bullish momentum, and reaching our projected target will confirm that DOGE entered a bullish phase and is likely to keep up moving upward in the following period.
Dogecoin Hits 1.93M Weekly Transactions as Active Addresses Rise, Price Targets $0.11
