Will Dogecoin (DOGE) continue its rally and see a parabolic rise this week?
The altcoin cryptocurrency market is seeing a significant rise of 5%. Amid this rally, Dogecoin broke through its psychological resistance of $0.35, with the market cap reaching $53 billion.
As the largest meme coin in the crypto market, Dogecoin holds almost 50% dominance in its segment. Will this upward trend propel Dogecoin beyond the $0.40 mark?
Dogecoin Price Analysis
Despite strong bearish influence at the start of the week, Dogecoin remains above its 23.62% Fibonacci support level at $0.31385.
Following the projected reversal of the double bottom mentioned in our previous articleDogecoin has regained bullish momentum.
With the bullish RSI divergence supporting the recovery, Dogecoin price rose near the 50% Fibonacci level at $0.3675. Currently, Dogecoin is trading at $0.3625, marking a series of consecutive bullish candles.
The chances of positive crossovers increased significantly after breaking above the 200 EMA line and the 38.20% Fibonacci level at $0.34356. Additionally, the 4-hour RSI has reached its overbought limit, further strengthening the likelihood of continued bullish momentum.
Optimistic Speculations Rise on Dogecoin
As Dogecoin’s rally strengthens, open interest in the room also increased. With a 10.83% rise in the last 24 hours, Dogecoin’s open interest now stands at $4.39 billion.
Although the long/short ratio of 0.9964 indicates a slightly higher number of bearish positions, the volume-weighted funding rate for Dogecoin jumped to 0.0098%. This suggests that traders are willing to pay a premium to maintain their bullish positions.
In particular, derivatives data indicates a potential continuation of the uptrend, supported by an increase in open interest, an increase in the funding rate and an improvement in the long/short ratio.
DOGE price targets
The breakout at the $0.34356 neckline continues to gain momentum, increasing the likelihood of a sustained uptrend. Over the past 24 hours, Dogecoin has increased by 5.26%, strengthening its position in an uptrend.
As the bullish momentum builds, Dogecoin is likely to reach the $0.39159 mark at the 61.80% Fibonacci level. However, if the market as a whole experiences a slowdown, a potential retest of the 38.20% Fibonacci level at $0.34356 is also possible.
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