Dogecoin price shows resilience by holding a significant support level. Analysts foresee potential growth due to technical factors and increasing market interest.
Support Above Key Level
According to analyst Ali, Dogecoin's price is positioned above the upper line of a long-term ascending triangle, indicating a bullish trend. The weekly chart shows DOGE trading above the 0.786 Fibonacci retracement level ($0.19-$0.25), which has transitioned from resistance to support. Maintaining this level could potentially lead to higher resistance targets of $0.50 and $1.27, with a possible rise to $4.00 through Fibonacci extension.
Bullish Indicators Strengthen Dogecoin Position
The Relative Strength Index (RSI) stands at 60.61, suggesting increasing buying pressure, yet it's below the overbought threshold. The Moving Average Convergence Divergence (MACD) also points to a bullish trend, as the MACD remains above the signal line, and rising histogram bars support the ongoing bullish market trend.
Open Interest Rises and Musk's Influence
Dogecoin's open interest has risen by 8.26% over the last 24 hours, reaching $1.3 billion in perpetual contracts, indicating heightened speculative activity among traders. Musk's 'D.O.G.E.' initiative, while not directly tied to cryptocurrencies, fuels market speculation, potentially driving Dogecoin to revisit previous highs.
Dogecoin shows growth potential due to maintaining key support levels, indicator combinations, and increasing market activity. Although Musk's D.O.G.E. initiative has sparked indirect associations, the interest in the asset and the possibility for reaching new heights remain.
