Dogecoin Needs to Break $0.25 to Resume Bull Run
Dogecoin struggles to break out as the $0.25 resistance level proves to be significant.
- Dogecoin remains stagnant, trading between $0.25 and $0.17.
- Closing outside of this price pocket might lead to a spike in volatility.
- Bullish estimates target $0.45, while bearish ones eye $0.07.
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Dogecoin appears to have lost the popularity it enjoyed at the beginning of the year as its price continues to consolidate without a clear outlook. Still, the technicals suggest a clear resistance level DOGE must overcome to resume its uptrend.
Dogecoin Sits Under Stiff Resistance
The meme-coin continues consolidating without proving a clear signal of where its price is going next. The lackluster price action led to the formation of a symmetrical triangle on DOGE’s daily chart. The series of lower highs Dogecoin has recorded since Apr. 23 formed the pattern’s hypotenuse, while the $0.16 support level created the x-axis.
As the tenth-largest cryptocurrency by market cap edges closer to the symmetrical triangle’s apex, it suggests that a significant price movement could be underway.
A spike in buying pressure around the current price levels that pushes Dogecoin above the triangle’s hypotenuse at $0.25 could be considered a breakout. If this were to happen, DOGE could surge by more than 78% towards $0.45.
Such a bullish target is determined by measuring the height of the triangle’s y-axis and adding it to the breakout point.
Wise traders might wait for a decisive daily candlestick close above $0.25 before entering any bullish positions. Failing to move past this hurdle may lead to a rejection that sends Dogecoin back to the $0.17 support floor, as seen over the past few months.
A retest of the $0.17 support may represent an ideal buying zone for market participants. Still, any signs of weakness at this level can result in a steep correction as the next critical support area sits around $0.07.