Amid a swift recovery in the cryptocurrency market, the meme coin segment is experiencing a resurgence. The total meme coin market cap has risen from $94 billion to $97.38 billion, driven by increased buying pressure. Leading the charge is Dogecoin (DOGE), which has seen a 13% increase over the past seven days, pushing its market cap to $47.15 billion.
With market optimism growing, the question arises: Can Dogecoin stage a year-end breakout?
DOGE Price Analysis
On the 4-hour chart, Dogecoin’s price action reveals a tug-of-war between bullish and bearish forces. Despite a recent failed attempt to break above the $0.4842 resistance, Dogecoin remains under a descending trendline, with lower highs indicating increased bearish pressure.
The correction phase has brought about a bearish “death cross” as the 50-period SMA crossed below the 200-period SMA. Furthermore, the 100-period SMA has also crossed below the 200-period SMA, reinforcing the bearish sentiment. These moving averages continue to act as dynamic resistance, keeping DOGE’s price in check.
Currently, Dogecoin is consolidating between the 23.60% and 38.20% Fibonacci retracement levels, with the $0.30 support zone providing a cushion. Trading at $0.3202, Dogecoin has formed a bullish engulfing candle, marking a 2.90% recovery within the past 4 hours. This bounce counters a 6.48% drop seen during the previous session, which formed a bearish engulfing daily candle.
Price Targets for Dogecoin
If the intraday recovery persists, Dogecoin could break above the 50-SMA line, increasing the likelihood of surpassing its long-standing resistance trendline. This would pave the way for a rally toward the 200-SMA line, aligning with the 61.80% Fibonacci level at $0.3913.
On the downside, failure to sustain above the critical $0.30 psychological level may lead Dogecoin to test its immediate support at $0.2664.
Also Read: Dogecoin Set for Explosive 2025 Rally: Can Elon Musk Propel DOGE to New Heights?
Dogecoin’s current price trajectory hints at a potential breakout as buying momentum builds. However, the alignment of key resistance levels and bearish indicators underscores the importance of cautious optimism. A definitive breakout above $0.3913 could signal a strong year-end rally, while a breach below $0.30 might reintroduce bearish pressure.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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