According to Trader Tardigrade’s analysis, Dogecoin’s recent market action points to a possible bullish breakout.
The analyst pointed out various bullish indicators in a tweet, suggesting a potential change in momentum. His accompanying chart offers a comprehensive analysis of Dogecoin’s price movement and technical indicators, indicating increasing buying pressure.
What you'll learn 👉
Higher Lows and Resistance Levels Indicate Strength
The analysis emphasizes the importance of higher lows, which have formed a staircase-like structure on Dogecoin’s price chart. This pattern reflects sustained buying activity and suggests that market participants are accumulating the asset.
Higher lows are often viewed as a bullish signal, indicating reduced selling pressure and stronger buyer control. The chart also highlights a horizontal resistance line near $0.42.
Dogecoin has tested this level multiple times without breaking above it. A confirmed breakout at this level could lead to an upward movement, aligning with the bullish trend indicated by technical indicators.
MACD Signals Momentum Shift
The MACD line lately crossed above the signal line in a bullish manner. Analysts interpret this as an indication that the momentum is turning bullish.
The histogram associated with the MACD has begun to turn green, further validating the shift in market sentiment.
Additionally, the widening gap between the MACD line and the signal line suggests growing buying pressure. These factors collectively point toward a potential price increase soon.
Read also: Why Is Avalanche (AVAX) Price Doubling? Key Chart Analysis Revealed
Support and Resistance Zones Highlight Key Price Levels
The analysis identifies critical price zones for Dogecoin. The support zone, established by the higher lows, lies between $0.36 and $0.38. If the price revisits this area, it may act as a foundation for further upward movement.
The resistance zone near $0.42 remains the immediate hurdle. A breakout above this level could open the door for Dogecoin to target higher prices, with potential levels around $0.47 to $0.50. These targets align with psychological thresholds and historical price behaviors.
Bullish Indicators Reinforce Positive Outlook
Trader Tardigrade’s analysis suggests Dogecoin is building bullish momentum. With a completed pullback, higher lows, and a bullish MACD crossover, the memecoin may be poised for a breakout if key resistance levels are breached.
While no guarantees can be made, the indicators support the narrative of increasing buying pressure and potential price recovery.
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