Dogecoin was back amongst the gains after recording a 27% jump over the last 24 hours. More importantly, DOGE breached the upper trendline and paved for an extended rally. The coming days would see DOGE challenge some critical price areas to maximize its value. In case DOGE bulls can gather numbers above $0.38, expect DOGE to tag its ultimate price ceiling at $445.
Dogecoin Daily Chart
Source: DOGE/USD, TradingView
Dogecoin eyed a 27% surge from its breakout point of $0.283 based on the highs and lows within its rising wedge. Should bulls capitalize on the ongoing breakout, DOGE would revisit its 16 August’s swing high of $0.352, provided bulls are able to overturn the $0.321 price ceiling convincingly. The ultimate hurdle lay at a resistance mark of $0.445, following which DOGE can challenge its May ATH.
Now according to the Visible Range Profile, there was an abundance of sell pressure between $0.30 and $0.380, which meant that DOGE’s ascent would be so straight forward like some of its other counterparts which were tackling record levels.
However, the building blocks for an extended push would be laid as soon as DOGE is able to register a close above $0.30. Moreover, a throwback to $0.30 would initiate new longs in the market, paving way for a bullish outcome.
Reasoning
DOGE’s RSI has formed consistent higher lows since 21 September, which was a huge positive. As bulls made steady progress, the RSI needed to best its earlier peak around 70 in order to stretch its leg above overbought territory. Meanwhile, the Directional Movement Index heavily favored the bulls as well. However, the MACD held a bullish-neutral outlook as buyers were yet to solidify their presence.
Conclusion
DOGE targeted a close above key areas to maximize its breakout potential. Over the near-term, a throwback can be expected at $0.30, after which DOGE would continue its ascent toward to $0.352. From there, a decisive close above $0.380 would see DOGE make its way towards the ultimate challenge at $0.445.
