Dogecoin is showing strong signs of a market revival, with recent price movements and technical indicators hinting at an incoming rally. According to technical analysis, Dogecoin’s recent price action has opened up a pathway to $1 that’s becoming increasingly visible if some conditions are met.
Particularly, technical analysis by crypto analyst MMBTtrader on the TradingView platform outlines a bullish setup that formed after a decisive Dogecoin price breakout from a long-term downtrend channel on the 3-day candlestick chart.
Related Reading
Downtrend Channel Breakout And Retest Complete
As shown in the 3-day candlestick price chart below, which was initially shared by MMBTtrader, Dogecoin broke above a descending parallel channel on July 15. This breakout is significant because it represents a shift in market structure from sustained selling pressure to an expansion phase from a channel that had contained its price action since late 2024.
However, after breaking out of this channel in mid-July, Dogecoin kicked off a correction path on July 21 that saw it reach down towards the upper trendline of the descending channel again. As noted by the analyst, this move allowed Dogecoin to successfully retest the breakout zone, which is a move he sees as confirmation that bulls have regained control.
Notably, the 0.61 Fibonacci retracement level appears as a key pivot point where Dogecoin’s price action eventually found strong support. This support was around the $0.188 price low on August 2, where it bounced upwards and has closed three bullish 3-day candles since then. MMBTtrader interpreted these candles as a healthy signal, suggesting that over-leveraged long positions have already been flushed out, and Dogecoin’s price action is now in a more stable state for a strong upside move.
Dogecoin Will Reach $1 When This Happens
Now that Dogecoin seems to have bounced from its retest of the descending trendline, the analyst highlighted some targets on the way to $1. The first price target is $0.32, which aligns with the 0.236 Fibonacci resistance and acted as a strong support level in December 2024. As such, breaching this level would represent a decisive break above a support-turned-resistance situation.
One of the most important observations in the analysis is the $0.40 resistance level, which is marked on the chart with a prominent red horizontal zone. According to MMBTtrader, a clean break above $0.40 would shift Dogecoin into what he calls an “extremely bullish” phase.
A breakout above $0.40 would unlock upside potential and push Dogecoin to new price territories above its current all-time high of $0.73. Particularly, the projection is that of a move to $0.75 and the most-coveted $1 price level.
Related Reading
At the time of writing, Dogecoin is trading at $0.2355, up by 6.2% and 17.7% in the past 24 hours and seven days, respectively. The most important thing for bullish momentum right now is to hold above the 0.5 Fib level at $0.216.
Featured image from Unsplash, chart from TradingView
Credit: Source link
