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As Dogecoin lifts off from the support trendline, the breakout rally chances for the biggest meme coin are increasing. Will the uptrend in DOGE surpass $0.10?
With the Bitcoin price stuck near $55K, the altcoin segment maintains a correction trend. Despite the minor-term recovery, top altcoins are under a bearish pattern. Amid this, Dogecoin prepares a bull cycle within a falling wedge for a breakout rally. Will it work out as the broader market sentiment struggles to recover?
DOGE Within The Fences of a Wedge
In the daily chart, Dogecoin is forming a falling wedge pattern. Since hitting a yearly peak at $0.22899 on March 28, 2024, it has dropped to a 52-week low of $0.08049, marking a 64.85% decline.
Despite this drop, Dogecoin avoids a closure below the support trendline, resulting in a prolonged trapped movement. Recently, the coin has experienced a three-day recovery, rising by 6.72% to its current price of $0.09865.
This recent uptick puts Dogecoin on the cusp of reversing a 5.96% decline observed on Friday, which resulted in a bearish engulfing candle.
Analyst Points Out Dogecoin’s Potential Breakout
In a similar price analysis, Ali Martinez hints at a potential breakout for Dogecoin, emphasizing a bullish outlook. He suggests keeping an eye on the falling wedge pattern on the DOGE daily chart. According to Martinez, a sustained close above $0.10 could trigger a bullish rally, potentially pushing the price to $0.15.
Dogecoin is currently approaching the $0.10 psychological level. If DOGE surpasses this mark, it could significantly enhance breakout prospects and positively impact market sentiment.
Dogecoin Crucial Price Levels
With the recovery rally gaining momentum, the MACD indicator signals a potential bullish crossover as the MACD line approaches the signal line. According to pivot levels, immediate resistance is positioned at $0.10161, aligning with the middle pivot point.
Should Dogecoin break out of the falling wedge pattern, it could test the R1 and R2 pivot levels at $0.12273 and $0.14419, respectively. Conversely, a bearish reversal would intensify pressure on the long-standing support trendline, increasing the risk of a breakdown.
In the event of a decline, crucial support levels for Dogecoin are at $0.08015 (S1) and $0.05903 (S2).