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Dogecoin (DOGE) Mega-Rally Continues: 3 Price Levels to Watch Next
TL;DR
Dogecoin has broken out above the $0.10 level, marking a significant price movement. The current momentum is strong but may be starting to diminish.
Key points
- Dogecoin broke above $0.10
- Momentum is currently strong
- Price structure showed steady higher lows
Dogecoin
Dogecoin just made a a clean breakout above the $0.10 region, and the move is what we expected for the last few months.
Dogecoin's momentum picks up
A single explosive candle usually doesn't matter as much as a slow grind higher, with steady higher lows, which was the structure leading into it. The aftermath of that breakout is what you're currently witnessing: momentum is present, but it's beginning to wane.
DOGE/USDT Chart by TradingView
Positioning in relation to moving averages is the first thing to observe. After turning from resistance to support, DOGE is currently trading above its short-term and mid-term averages. There has been a change in market power. Instead of responding, buyers are taking the initiative.
The breakout is supported by volume, but not to the degree you would anticipate for a prolonged vertical move. It is sufficient to confirm the push, but insufficient to ensure uninterrupted continuation. Additionally, RSI is rising, which is consistent with strength, but also indicates that the short-term upside is getting crowded.
Three levels are immediately relevant. Your immediate support is $0.104-$0.105. It corresponds with short-term averages and is the breakout zone. The breakout becomes weaker if the price rapidly drops below this level. The rising trendline support is $0.097-$0.098. Losing it would shatter the framework that initially supported the move. The next resistance cluster is $0.110-$0.112. Price has already responded there once, so unless volume increases, sellers will likely defend it once more.
What's next for DOGE
The most likely scenario for what comes next is not a direct continuation. After a breakout like this, markets typically don't act that neatly. Consolidation above $0.10, allowing momentum to cool while maintaining structure, is more realistic. The likelihood of DOGE continuing toward greater resistance increases significantly if they are able to maintain their position above that level and establish a base.
Q&A
What price level did Dogecoin recently break above?
Dogecoin recently broke above the $0.10 price level.
What does the current momentum of Dogecoin indicate?
The current momentum of Dogecoin indicates strong price movement, although it may be beginning to wane.
How has Dogecoin's price structure changed recently?
Dogecoin's price structure has shown a pattern of steady higher lows leading up to the recent breakout.
