Dogecoin's price has recently reignited bullish momentum, which has led to increased interest among traders and investors. Current technical indicators suggest potential growth in the near future.
Market State of Dogecoin
The recent rally of Dogecoin's price to $0.2018 signifies significant changes after a prolonged consolidation phase throughout June. After weeks of flat price action around the $0.15-$0.17 range, DOGE has surpassed the psychological resistance at $0.20, a level not seen since early May. This breakout from horizontal resistance indicates a possible end to the accumulation zone and the beginning of an upward phase.
Technical Indicators and Their Meaning
The Relative Strength Index (RSI 14) is currently hovering at 70.01, placing Dogecoin right on the edge of overbought conditions. Historically, DOGE's price has shown impulsive movements once it crosses the 70 mark, although traders should be cautious since this often precedes short-term corrections.
Future Targets and Support Levels
The chart also shows Fibonacci extension levels calculated from the recent swing low ($0.147) to swing high ($0.208). The 0.236 level (~$0.20) has been recently tested and breached. If DOGE holds above $0.20, it will confirm the breakout. However, failing to do so may see the price retest support around $0.192 and $0.185.
Thus, if DOGE's current momentum continues, a move towards the $0.22–$0.25 range is expected in the coming days. However, it is important to watch for confirmations before executing trading decisions.
