Dogecoin (DOGE) is once again capturing market attention following a surge in trading volume and emerging bullish signals. Analysts note that DOGE may be gaining strength for further growth, approaching key resistance levels.
Signals for Trend Change in Dogecoin
Crypto analyst David Perk recently shared an analysis based on the Candle Liquidity Sweep (CLS) and Order Block (OB) model. According to Perk, DOGE completed a three-month CLS sweep, where the price dropped below key support to trigger liquidity. This often indicates that large players are absorbing sell pressure to build positions.
Volume Spike and Government Mention
DOGE saw renewed buying interest after a U.S. government retweet referenced its involvement in a defense-related initiative. This announcement caused DOGE to spike from $0.15 to $0.22 in minutes, with trading volume jumping over 300%. Technical indicators further support the bullish shift, with RSI rising from 50 to 75.
Current Market Situation for Dogecoin
DOGE is now consolidating above strong support, and with the volume, sentiment, and technicals aligned, traders are eyeing a breakout past $0.25. This could set the stage for a multi-phase rally towards $5.
The resurgence of interest in Dogecoin, underscored by technical and fundamental indicators, creates positive prospects. Traders are closely monitoring future developments.
