Dogecoin Gold price is making waves again, with bulls stepping forward after a break of the key trend line that could start a fresh rally. After a period of sideways movement, the momentum has shifted in favour of buyers, who now have their eyes set on the target of $0.1293. This break could mark the beginning of a significant uptrendBut the real test is yet to come: can the bulls maintain the momentum or will the overhead resistance halt their advance towards new highs?
This article seeks to analyze Dogecoin’s recent trendline breakout and its potential for further upside. We will take an in-depth look at the technical indicators driving the bullish momentum, assess the key resistance levels, and determine whether the bulls have enough strength to propel the price towards the $0.1293 mark.
In the past 24 hours, DOGE was trading near $0.1068, marking an increase of 4.68%. The cryptocurrency’s market cap has surpassed $15.5 billion, while the trading volume exceeded $717 billion. During this period, both the market Market capitalization and trading volume increased by 4.70% and 71.33% respectively.
Technical indicators indicate strong bullish potential
Recently, Dogecoin’s price action on the 4-hour chart has turned bullish following a break above a key trend line. The price is now consolidating above the 100-day simple moving average (SMA), which indicates that bulls remain in control.
Specifically, positioning above the 100-day simple moving average (SMA) often reflects an underlying bullish trend. impulseand if this trend continues, it could pave the way for a further bullish move. However, a breakout of this consolidation range will be crucial in determining the next leg of the rally.
An analysis of the 4-hour Composite Trend Oscillator shows that the bulls are firmly in control of the market. Both the signal line and its SMA have moved into the overbought zone, indicating strong bullish momentum. This positioning suggests that the current uptrend still has room for growth, with the potential for Dogecoin price to rise further in the near term.
Moreover, on the daily chart, DOGE, after breaking above the downtrend line, is currently attempting to move towards the 100-day simple moving average (SMA). With this recent bullish momentum and the break of the trend line, the digital asset could extend its rally towards the resistance level of $0.1294.
Finally, on the 1-day chart, the Composite Trend Oscillator also indicates increasing positive strength for the cryptocurrency as the signal has crossed above the indicator’s SMA and both lines are trying to break out of the oversold zone towards the zero mark.
Upside potential vs. downside risks: What’s next for Dogecoin?
Dogecoin’s recent bullish momentum presents a strong upside potential, especially after breaking above a key trendline. If the price can sustain its position above the 100-day simple moving average (SMA), a move towards $0.1293 and other resistance levels seems likely.
However, downside risks remain, including overbought signals on key indicators that could lead to a short-term pullback towards the $0.09149 support level. A break below this support level could signal a deeper downtrend, leading to further price declines towards further lower levels.
Featured image from Unsplash, chart from Tradingview.com
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