Dogecoin price maintains bullish momentum amid recent breakout
DOGE tests resistance at $0.398, signaling bullish continuation
Dogecoin (DOGE) continues its upward trajectory, trading around $0.384 following a recent breakout. The cryptocurrency is maintaining steady bullish momentum, as observed in its 4-hour chart, which reflects higher highs and ascending trendlines.
Analysts highlight a potential symmetrical triangle formation on the daily chart, suggesting DOGE could be nearing a significant breakout point in either direction. The immediate focus is on its ability to surpass $0.398, a key resistance level marking previous failed breakouts.
DOGE price movement (Dec 2024 - Jan 2025) Source: TradingView.
Technical indicators signal strength
DOGE's upward momentum is reinforced by strong technical indicators. The immediate resistance for DOGE stands at $0.398, with a key psychological barrier at $0.416, while support levels are well-defined at $0.338 and $0.310, offering a cushion against potential pullbacks.
On the 4-hour chart, DOGE trades above the 20, 50, 100 and 200 EMAs, reflecting strong bullish sentiment, further validated by the upward slope of these averages. Additionally, the 30-minute RSI, currently at 64.32, highlights bullish momentum but suggests the cryptocurrency is nearing overbought territory. The MACD adds to the positive outlook, showcasing a bullish crossover with strengthening histogram bars. Together, these indicators point toward sustained upward potential for DOGE.
Volume confirms breakout potential
A surge in trading volume has accompanied DOGE’s recent breakout, validating its upward movement. Sustained volume above average levels could further bolster confidence in the cryptocurrency’s bullish trajectory.
DOGE remains well-positioned for further gains, provided it can break above the $0.398 resistance level. A successful breach could propel prices toward $0.416 and potentially as high as $0.450 in the long term. Conversely, failure to hold support at $0.338 could see the cryptocurrency retreat toward $0.310 or lower.
In our previous analysis, we discussed the influence of whale activity and Elon Musk's potential X Money platform on Dogecoin's price. These speculative factors, combined with strong technical indicators, continue to shape DOGE's market trajectory.
