Is Dogecoin on the Verge of a Bullish Breakout?

• Analysts are optimistic about Dogecoin’s potential rally, with significant resistance levels to watch.
• A recent accumulation phase by miners is helping limit sell-side pressure, supporting bullish sentiment for DOGE.

Dogecoin is experiencing a bullish momentum at press time. DOGE is the top memecoin with 1.21% in market cap next to SHIB. DOGE is currently trading at $0.11006, reflecting a 2.34% increase in value. Over the past 24 hours, trading volume has surged to $701 million, up 16.29%, contributing to a market cap of $16 billion—a 2.41% increase. Despite this positive momentum, DOGE remains approximately 85% below its all-time high of $0.7376.

Furthermore, a bullish forecast from analyst TradingShot highlights that Dogecoin has completed an accumulation phase, a critical precursor to potential price rallies. This phase appears to have been supported by miners, who have acquired approximately $25 million worth of DOGE in the last two months. In addition to this, Elon Musk has announced DOGE as the mascot for his new Department of Government Efficiency. 

Are Bullish Signals Emerging?

Analysts are optimistic about a potential bullish breakout for Dogecoin. According to crypto analyst Ali, the moving average is $0.10662 and is trending upward, indicating a bullish streak. The Relative Strength Index (RSI) stands at 58.78, approaching overbought territory, while the stochastic RSI has shown a bearish crossover, suggesting a possible short-term correction before a significant upward move.

Resistance levels are crucial for DOGE’s next steps. The primary resistance is $0.14086, last reached on July 21, while the next significant resistance is $0.13449. If DOGE can surpass the $0.11268 resistance, there may be potential for further bullish movement. The coin’s block size recently hit a 7-day low at 40,203,611 bytes, indicating reduced network activity.

In summary, while some indicators suggest a potential short-term correction, the overall sentiment remains bullish. If resistance levels can be breached, Dogecoin could be poised for a significant rally shortly.

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