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Dogecoin price is climbing toward $0.20, with 71% of traders holding long positions. Will a breakout rally propel DOGE to $0.30?
With Bitcoin momentarily reaching the $104,000 mark, meme coins are turning extremely bullish. The meme coin segment has surged by 11%, reaching a total valuation of $62.20 billion.
Amid the growing bullish sentiment, Dogecoin has risen by nearly 10%, pushing its market cap to $29.26 billion. As DOGE approaches the key $0.20 breakout level, it appears poised for its next major move. Could this breakout rally drive Dogecoin’s price up by 85%?
On the daily chart, Dogecoin has staged a strong recovery after establishing support around $0.14, making several bullish attempts to break through the $0.20 resistance zone. This ongoing struggle, paired with increasing bullish momentum, has led to the formation of an inverted head-and-shoulders pattern.
The pattern’s neckline aligns with the psychologically significant $0.20 mark. Moreover, a 15% jump on May 8 formed a large bullish candle on the chart, surpassing the 50-day exponential moving average (EMA) at $0.1795 and the 23.60% Fibonacci retracement level at $0.1869.
Currently, Dogecoin is testing both the neckline resistance and the 100-day EMA at $0.20. A breakout appears imminent. Supported by broader market recovery, a successful breakout could spark a major trend reversal and initiate a fresh bullish phase.
The 38.20% Fibonacci level sets an immediate price target at $0.2227. Optimistically, a breakout from the inverted head-and-shoulders pattern could propel DOGE to the 61.80% Fibonacci level at $0.2957, suggesting a potential 45% rally and a possible retest of the $0.30 mark.
On the downside, the 50-day EMA at $0.1795 remains a crucial support level.
As Dogecoin gains momentum, sentiment in the derivatives market remains highly bullish. Open interest has surged nearly 17% to $2.11 billion, while a funding rate of 0.0102% reflects aggressive bullish positioning.
According to Coinglass, the long-to-short ratio has seen significant fluctuations over the past 12 hours. However, the bullish narrative currently dominates, with long positions comprising 52.02% of trades, bringing the long-to-short ratio to 1.0842. This indicates increased odds of a bullish continuation.
On Binance, the bullish narrative peaks with long accounts rising to 71.05%. Hence, traders anticipate a breakout rally in Dogecoin for an extended rally.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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