Dogecoin is showing signs of a potential breakout amid growing optimism among traders. At the time of writing, the memecoin is trading above its key $0.17 support, with technical indicators suggesting a possible test of higher resistance levels.
Long/Short Ratio Indicates Growing Optimism
Dogecoin’s long/short ratio surged from 0.85 to 1.20 over the past 24 hours, indicating rising confidence in a potential DOGE price increase. Historically, crossing the 1.00 mark has led to breakout attempts, signaling the return of speculative appetite in the DOGE market.
Dogecoin’s Technical Structure
From a technical standpoint, Dogecoin remains within a long-term ascending channel, staying above crucial diagonal support near $0.17. Fibonacci extensions point to resistance levels at $0.22 and $0.23, with a break above potentially paving the way toward $0.30.
Key technical levels include:
* Immediate resistance: $0.182 (50 EMA). * Next resistance: $0.22–$0.23 (2.618 and 3.618 Fib extensions). * Critical support: $0.16, with downside risk to $0.15 if this level fails.
Momentum Indicators Signal Neutral to Bullish Outlook
Dogecoin’s RSI sits at 50, reflecting a neutral stance. However, stable sideways price action near $0.175, combined with narrowing Bollinger Bands and flat-lining MACD, suggests the asset may be coiling for a significant move.
With Dogecoin maintaining its position above $0.17 and bullish sentiment growing, the next key test lies at $0.22–$0.23 resistance. If trading volume picks up, a move toward $0.30 could materialize. Traders are advised to monitor sentiment, volume, and key support levels closely, given memecoin volatility.
