What’s Ahead for $DOGE After 26% Weekly Surge?

Dogecoin Price Prediction: Amid the recent uptick in the broader crypto market sentiment, Dogecoin (DOGE) demonstrated significant momentum starting from the fourth week of November. The coin rebounded from a local support level of $0.07, achieving a remarkable 48.8% increase to reach a high of $0.106. This rally is noteworthy as it signifies the Doge price breaking out of a year-long accumulation phase, hinting at an early sign of a trend reversal.

Also Read: Dogecoin Price Prediction As $DOGE Breaks 700-Day Resistance; Is Rally $0.1 Imminent? 

Triangle Breakout Hints Massive Bull Run Ahead

• The DOGE price breakout from the triangle pattern hints at the continuation of the recovery trend.
• A bullish crossover between the 100-and-200-day EMA should accelerate the recovery momentum.
• The 24-hour trading volume in Dogecoin is $2.58 Billion, indicating a 58% gain.

As the market gears towards recovery, the Dogecoin price achieved a bullish breakout from the resistance trendline of a symmetrical triangle pattern on December 2nd. This pattern, characterized by the coin’s price oscillating within two converging trendlines, hinted at impending changes in trend direction. 

The breakout has propelled the coin price to a 7-month high of $0.105. Coinciding with its 10th anniversary, Dogecoin experienced an additional surge of 13%, challenging the overhead resistance. 

As the DOGE price continues to ride the momentum of the triangle pattern, it has the potential to reach targets between $0.16 and $0.22, provided that the buying pressure is sustained. 

However, the immediate resistance at $0.105 could lead to a minor retracement. In such an event, DOGE holders might consider the 38.2% or 50% Fibonacci retracement levels as strategic points for setting stop-loss orders to mitigate risk.

DOGE Futures Open Interest Reaches $625 Million

The dollar-denominated open interest in DOGE, which represents the total value involved in active futures and perpetual futures contracts, has experienced a significant surge. In just two weeks, this figure has climbed by $405% Million to $625 million, the highest recorded in over a year, as per the data from CoinGlass. Such a substantial increase in open interest, aligned with the ongoing recovery in the DOGE price, suggests growing investor confidence and interest in an asset.

• Average Directional Index: The ADX slope at 35% suggests that the buying momentum might be nearing exhaustion, indicating the possibility of a minor pullback.
• Exponential Moving Averages: The ongoing recovery finds dynamic support from the 20-day and 50-day EMAs, which have provided a reliable safety net during pullbacks.