Will Dogecoin (DOGE) rally to a new 52-week period near the psychological $0.50 mark as it moves in an ascending channel?
Amid broader market trends, Dogecoin continues to maintain its bullish momentum, holding above the $0.40 mark. Additionally, Dogecoin’s market cap remains above $61 billion, having surged 174% over the past 30 days.
With a trading volume of almost $9.5 billion, will Dogecoin’s uptrend push the price beyond the $0.50 mark? Let’s take a closer look.
Dogecoin Price Analysis
On the 4-hour chart, Dogecoin price action is following an ascending channel trend. Currently, Dogecoin is struggling to break above the $0.44 mark in the bullish channel.
This indicates the presence of a strong supply zone, which limits bullish growth. However, a short-term recovery led to the formation of a local support trendline within the channel, creating an ascending triangle pattern.
Currently, DOGE price is supported by the confluence of the local support trendline and the $0.50 EMA line on the 4-hour chart. As Dogecoin approaches the top of the ascending triangle pattern, the bullish cycle is likely to continue with a breakout rally.
The EMA lines on the 4-hour chart maintain a positive alignment, supporting the uptrend. However, the MACD and signal lines have seen a negative crossover and are trending lower with increasingly bearish histograms.
Thus, dynamic moving averages and momentum indicators offer conflicting signals about the upcoming price trend.
Will Dogecoin get closer to $0.50?
The $0.44 supply zone coincides with the trend-based Fibonacci retracement level of 23.60%. Based on these levels, a rally on a breakout would target the 38.20% Fibonacci level at $0.4944, which aligns with the overhead resistance trendline.
Therefore, a break above the $0.44 area could propel Dogecoin towards the $0.4944 level. In a bearish scenario, a break of the support trendline would test the 100 EMA line near $0.3936.
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