- Dogecoin needs to break above the $0.28 level, the 50-day EMA, for a confirmed breakout.
- A close above this could push the price toward the $0.30-$0.32 range.
Dogecoin (DOGE) is showing signs of life again. The cryptocurrency has just crossed a significant milestone in trading volume, pushing past the 200 EMA. While the volume is moderate, it could be enough to spark a rally in the coming weeks.
Dogecoin Facing Resistance After 2024 Decline
Despite the upward movement, DOGE is still facing stiff resistance. The price failed to hold its highs near $0.50 in late 2024, leading to a sharp decline. After this drop, DOGE slipped below crucial moving averages like the 50-day and 100-day EMAs, which are now acting as resistance levels. However, the 200-day EMA has managed to hold the price up, providing support. This could signal that a rebound is on the horizon.
Crucial Levels to Watch: $0.26 and $0.30
Currently, DOGE is testing the $0.26 level. If the price can break above this, it may open the door for further gains. The next target would be the $0.30 level, which has been a resistance zone in the past. A move beyond that could push Dogecoin into the $0.32-$0.35 range. This area has seen selling pressure before, so a breakout here would mark a strong shift in momentum.
Dogecoin Key Breakout Signal: $0.28 EMA
For a breakout to be confirmed, DOGE needs to close above the $0.28 mark, which is the 50-day EMA. A daily close above this level with strong volume could lead to significant upward movement, targeting the $0.30-$0.32 zone.
Downside Support and Potential Risks
On the downside, support remains at $0.24. If DOGE falls below this level, it could revisit the $0.22 area. In this case, the cryptocurrency would continue to face bearish pressure. But for now, the Relative Strength Index (RSI) is hovering around 38, which indicates that DOGE is still in a bearish phase but could be gearing up for a reversal. If the RSI crosses above 50, it would be a strong signal that the bulls are gaining control.
Watch the $0.28-$0.30 Levels
Despite the cautious trading volume, the market is watching closely. DOGE faces resistance, but a breakout above the $0.26 level could trigger more upward movement. Investors should keep an eye on the $0.28-$0.30 levels, as they could be key indicators for the next phase of DOGE’s price action.
