Dogecoin’s price action in the past 24 hours has been characterized by a 4.2% increase from an intraday low of $0.1565. This upward move in the past 24 hours could be the first of a strong push above a downtrend channel that has encompassed Dogecoin’s price action in recent weeks. Despite this upward momentum, technical analysis highlights a key resistance level directly ahead, one that could stall the rally and potentially trigger another rejection that drags Dogecoin’s price back down.
Main Dogecoin Resistance Area Could Define Price Movement
Dogecoin continues to respect the descending channel structure that has guided its price since late February on the 12-hour candlestick timeframe. Although the memecoin has attempted to break out in previous weeks, each effort has met resistance near the channel’s upper boundary. The current momentum, however, suggests that the Dogecoin price is on the way back above the $0.20 price level.
According to MadWhale’s analysis on TradingView, Dogecoin has been trading in a classic descending channel pattern for months. As it stands, the meme coin is now approaching the upper trendline of this descending channel, which is currently sitting at $0.18.
The primary zone of resistance to keep an eye on is presently at this point, where previous rallies have faltered and resulted in the formation of lower highs. A successful breakout above this range would not only signal a trend reversal but also confirm bullish momentum strong enough to target higher levels.
$0.21 Price Target Hinges On Resistance Clearance
Looking at the Dogecoin price chart above, which followed the analyst’s outlook, a green arrow pointing from the consolidation area toward $0.21 shows a projected move of about 40% to the upside, which is MadWhale’s primary target, should the breakout confirm. However, the prediction is only speculative unless DOGE can confirm a break above the resistance trendline. Notably, this confirmation can be achieved by a decisive close above the resistance band on lower timeframes, up to the 12-hour timeframe. A strong trading volume would also be important in how this plays out.
Despite the overhead resistance, MadWhale maintained a bullish tone, especially for long-term holders. As the analyst noted, the current price level is great for a long-term buy for at least 40% gains.
However, the timing of such a move is as important as the possibility of the move. The broader market sentiment is currently uncertain, although Bitcoin’s recent break above $88,000 suggests that bullish momentum may be creeping in. Consequently, Dogecoin’s breakout will likely depend on larger crypto flows and improving sentiment across altcoins.
At the time of writing, Dogecoin is trading at $0.1636. Trading activity appears to be gradually increasing, with a 14.71% rise in DOGE trading volume over the past 24 hours.
