Dogecoin (DOGE), the popular meme-inspired cryptocurrency, is currently demonstrating signals that suggest it might be on the cusp of a significant bullish breakout.
According to a recent analysis from prominent crypto analyst Ali, the meme-inspired cryptocurrency appears to be approaching a crucial resistance level, with market behaviors hinting at potential upward movement.
Eyes Set On Breaking The $0.2 Resistance Level
Ali, a well-known market analyst, pointed out that Dogecoin is testing the possibility of reaching its highest price level in over a month at $0.2. His analysis is based on DOGE’s recent escape from a descending triangle pattern, which typically suggests a shift in market dynamics favoring buyers.
Following a pattern similar to the previous cycle, where DOGE experienced a retracement after breaking out from a descending pattern before rallying, the asset has recently completed a significant 47% retracement.
This movement has led Ali to highlight the market’s tendency to echo past patterns, though not perfectly. With the breakout from the descending pattern and subsequent retracement now complete, DOGE is positioning itself for another push toward the $0.2 resistance level.
History doesn’t repeat itself, but it often rhymes!! https://t.co/qr9BG5QnjH
— Ali (@ali_charts) May 21, 2024
This level has proven challenging, with selling pressure frequently intensifying around this range. However, the broader market sentiment remains bullish, which could support Dogecoin’s push toward this key price point.
Notably, to reach $0.2, DOGE would need to increase further by nearly 20% from its current position. Currently, the memecoin is trading at $0.168, reflecting a 10% increase over the past 24 hours and continuing a week-long uptrend that has seen nearly a 15% increase.
Surging Interest In Dogecoin And Strong Upside Signal
The positive movement in DOGE’s price performance is further underscored by a surge in DOGE’s open interest, which has risen by 23% in the past day to reach $1 billion, according to data from Coinglass.
Additionally, the open interest volume has soared by 200%, now at nearly $4 billion. An increase in open interest indicates that new market participants are entering or existing positions are being expanded. This can be a sign of strengthening market activity and a supportive factor for the ongoing price increase.
Echoing Ali’s sentiment, another analyst from Crypto Daily Trade Signals identified a symmetrical triangle pattern in DOGE’s price movements, reinforcing the potential for continued upward momentum.
According to this analysis, Dogecoin is showing signs of bullish behavior, with immediate resistance near $0.15950. However, since DOGE already surpassed that, the analyst noted other resistance levels at $0.16980 and $0.18440.
Featured image created with DALL·E, Chart from TradingView