Dogecoin Price Surges Past Key Resistance Levels as Whales Accumulate, Breakout Ahead?

Dogecoin has continued its upward movement and is now close to the $0.50 psychological level as whales buy more tokens.

Dogecoin holds more than half of the meme coin market segment with a market capitalization of $60.82 billion in the wake of the overall cryptocurrency surge.

Market Performance and Key Indicators

Dogecoin price has surged taking its 7-day increase to 16%. This growth is in line with Bitcoin trading above $100,000, which has boosted the performance of other cryptocurrencies.

Dogecoin price action on the 4-hour chart has pushed towards the 61.80% Fibonacci retracement level at $0.39139.

The token has formed its second bullish candle in a row, with an increase of 2.16% in the last four hours.

These movements suggest that a breakout through the Fibonacci resistance level is possible.

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More so, there are several technical indicators that back this bullish outlook. The 50-day and 200-day exponential moving average lines have crossed, signaling a golden crossover, which is a bullish pattern.

Furthermore, the 100-day EMA is about to break above the 200-day EMA, which means buying interest is on the rise.

Similarly, the RSI on the 4-hour chart is close to the overbought zone, which also points to further growth.

Whale Activity Bolsters Bullish Momentum

Whale activity has picked up in the Dogecoin market, contributing to the current rally of the token.

Data from Santiment suggest that whales purchased about 200 million DOGE tokens in the last 48 hours.

This accumulation proves that high net worth investors are increasingly interested in Dogecoin because its price is close to a crucial resistance level.

Notably, this is happening as the overall market capitalization of the meme coin market reaches nearly $110 billion.

Dogecoin, which dominates this market segment, continues to attract the attention of investors looking for a place to make profits as the market rises.

The increase in whale activity shows a growing belief in the token’s ability to climb even higher in value.

Key Support and Resistance Levels

While Dogecoin is approaching the $0.50 psychological level, traders are keen on watching the price action.

A move above this level may open a path towards the $0.5865 mark, the yearly high.

More potential upside targets are identified at $0.52 using Fibonacci retracement levels with the price potentially reaching a 52-week high.

However, the critical levels for the support can be seen at $0.3875 and $0.3663. These levels are expected to offer decent support in the event of a pullback so that the token continues with the bullish pattern.

At press time, Dogecoin price is trading at $0.39 after visiting $0.4119 the previous day. It was a little over 5% down in 24 hours.

The market cap is $58.1B, with a 21.53% increase in daily trading volume, reaching $7.23B.

While the price broke past the $0.40 resistance, signaling strong bullish momentum, with further upside potential likely, there is currently a lag in the momentum of price surge.