DOGE Consolidates With Higher Lows as Traders Eye Breakout

Key Insights:

• Breakout above $0.26 could trigger a surge to $0.35, $0.47, or $0.60+
• Dogecoin tests crucial support at $0.218–$0.222, signaling potential bounce to $0.245
• The bullish outlook is supported by higher highs and lows on Dogecoin’s weekly chart.

Dogecoin (DOGE) continues to show consolidation with higher lows, leading traders to closely monitor the potential for a breakout. Analysts suggest that a move above the $0.24–$0.26 range could trigger a surge in price, reaching new highs.

Analyst Predicts Breakout Above $0.26

According to analyst Dollarcurrency1, Dogecoin has been consolidating within a triangle pattern since 2023. The analyst notes that the cryptocurrency has been forming higher lows, suggesting potential bullish momentum. 

Notably, the  Analyst highlighted that a breakout above 0.24–0.26 could ignite a Surge to 0.35, 0.47, and even 0.60+. Traders should watch for a breakout above these critical resistance levels, which could open the door for further gains.

The analyst suggests that traders may find favorable entry points near the trendline until the breakout occurs. Accumulation around this area could set up for a larger move once the price breaks above key resistance levels.

Dogecoin Testing Crucial Support

However, Crypto analyst Ihsanagaz points out that Dogecoin is currently retesting a critical support zone between $0.218 and $0.222. An upward trendline and a demand area reinforce the support, which may help stabilize the price.

The Relative Strength Index (RSI) has reached former resistance levels and is now acting as support. If the price holds above this support, a bounce is likely to occur, with a target of $0.235 to $0.245.

The test of this critical support level is key for Dogecoin’s short-term outlook. A strong bounce could lead to a recovery, while a failure to hold this level may signal further downside risk.

Bullish Outlook and Dogecoin’s Current Price

Analyst Cantonmeow highlights Dogecoin’s formation of higher highs and higher lows on its weekly chart. This pattern indicates a bullish bias, suggesting the potential for significant further upside movement.. 

According to the analyst, the DOGE is currently within a range between the Tenkan/Kijun levels below and the Ichimoku cloud above. The price is near the bottom of this range, offering what the analyst describes as a decent risk-reward ratio for potential long positions.

As Dogecoin remains near the bottom of the range, the analyst considers this a good entry point for traders expecting the price to continue its upward trend. The continuation of this bullish pattern depends on the momentum sustaining above key support levels.

As of now, Dogecoin is trading at $0.218223 with a 24-hour trading volume of over $4 billion. It has seen a 5.12% drop in the last 24 hours, reflecting market fluctuations. With traders eyeing key support and resistance levels, which are critical in determining Dogecoin’s short-term direction.