Dogecoin (DOGE) experienced a notable 4.4% price increase over the past 24 hours, reaching $0.126 and capturing the cryptocurrency community’s attention. This surge followed Bitcoin‘s recovery from a critical support level, which positively influenced Dogecoin’s value. The altcoin’s price chart displays a promising pattern, suggesting a 99% breakout potential in the near term.
Why Dogecoin Could Break Out Soon?
Since Dogecoin’s mini bull run in March, hitting $0.22, the descending wedge pattern has been approaching its conclusion. This formation indicates a substantial breakout that could propel DOGE’s price to $0.27. The 14-day relative strength index (RSI) for the altcoin is currently at 43 and climbing. If the RSI exceeds the 50 mark, the upward momentum could gain strength, pushing the price even higher.
Dogecoin’s recent movements brought it closer to the 50-day and 200-day simple moving averages (SMAs), though it remained just below these levels. The 50-day SMA sits at $0.139, and the 200-day SMA at $0.131, both acting as resistance points. If DOGE can break past these SMAs, it might escape the descending wedge formation and exceed the year’s high of $0.22.
What Is the Fibonacci Retracement Level?
Furthermore, DOGE is currently testing the 0.786 Fibonacci retracement level, which has served as a strong support zone over the past four months. A successful rebound from this level could drive Dogecoin’s price toward the 0.27 Fibonacci extension level, approximately $0.27. According to CoinGecko, Dogecoin’s 24-hour trading volume saw a recent 43% increase, reflecting increased market activity and interest.
Key Insights for Investors
Investors should consider the following key points:
- The descending wedge pattern suggests significant breakout potential.
- RSI movement above 50 could indicate accelerating upward momentum.
- Breaking above the 50-day and 200-day SMAs could lead to surpassing the yearly high.
- The 0.786 Fibonacci retracement level is a crucial support zone.
- Increased trading volume signifies heightened market interest.
Looking ahead to the latter half of 2024, there is speculation among crypto enthusiasts and analysts that DOGE could reclaim its previous all-time high of $0.73. A notable analyst on X, Javon Marks, predicted a considerable 404% rally, possibly returning DOGE to its former peak.
Additionally, Elon Musk’s influence on Dogecoin’s trajectory remains substantial. His endorsements and Tesla’s acceptance of DOGE as a payment method have significantly impacted its price. SpaceX and X are anticipated to integrate DOGE for payments soon, which could reinforce the bullish outlook.