Key Insights:
- Dogecoin retests descend3ing broadening wedge resistance, turning it into support.
- 20-month SMA flips from resistance to support, reinforcing bullish sentiment.
- Derivatives data shows rising open interest and strong long positioning.
Dogecoin is holding a bullish market structure as it trades at $0.2369, marking a 6.15% gain in 24 hours.
The cryptocurrency has risen 18.42% over the past week, signalling renewed buying momentum.
Analyst Trader Tardigrade noted that the monthly chart shows Dogecoin maintaining a well-structured Ascending Broadening Wedge.
This pattern mirrors historical setups that preceded significant rallies, with the upper boundary acting as a potential target zone.
Key Technical Developments
The 20-month simple moving average (SMA) has flipped from resistance to support, a level now acting as a strong bullish base.
Price action has also confirmed a successful retest of the descending broadening wedge breakout on the two-week chart.
Long-term momentum is supported by stochastic indicators moving upward from oversold conditions, highlighting potential for further gains.
Hourly chart data shows DOGE continuing its upward momentum, trading at $0.24043 after gaining 1.07% in the last hour. Price is holding above the Supertrend support at $0.23202, confirming bullish control.
The MACD line remains above the signal line with positive histogram bars, signaling sustained buying pressure.
RSI is at 75.92, entering overbought territory but still trending upward, indicating strong momentum despite the possibility of short-term pullbacks.
Market Positioning and Outlook
Derivatives market data indicates a notable rise in trading activity, with volume increasing by 1.30% to $6.44 billion.
Open interest climbed 8.99% to $3.68 billion, while options open interest surged 476.65% to $1.26 million, reflecting heightened speculative interest.
Long positions currently dominate, with Binance DOGE/USDT showing a top trader long/short ratio of 3.0258 by accounts and 2.9469 by positions.
Across exchanges, the 24-hour long/short ratio stands at 1.0064, signaling balanced but slightly bullish positioning.
If bullish momentum continues, DOGE could challenge higher resistance levels identified on both the weekly and monthly charts.
Analysts maintain that the structural patterns and improving market metrics support the case for an extended rally.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/analysis/dogecoin-breakout-signals-uptrend-as-key-technical-levels-hold/