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As the leader of crypto memes, Dogecoin (DOGE) is gaining momentum. Could a trend reversal rally propel it to the $0.20 mark?
With the crypto market gradually expanding and Bitcoin reaching the $68,000 milestone, meme coins are experiencing significant momentum. Additionally, with the U.S. elections approaching and Dogefather Elon Musk hosting a town hall, Dogecoin is making a comeback.
With an 8.48% rise in the past 24 hours, Dogecoin has surpassed the $0.13 barrier. It is also inching closer to a $20 billion market cap with an approximately 24% jump over the last week. With this newfound momentum, will Dogecoin reclaim the $0.20 mark?
Dogecoin Price Analysis
In the daily chart, Dogecoin shows a rounding bottom reversal powered by a double bottom pattern at the $0.10 psychological mark baseline. The meme coin seems unstoppable after breaking the neckline of the double bottom pattern at the 23.60% Fibonacci level of $0.11349.
Over the past eight days, Dogecoin has made consecutive bullish candles, accounting for a 25.51% surge. From $0.10592 to $0.13294, the intraday candle shows a gain of 2.60% but registers a higher price rejection from $0.13628, resulting in a long wick.
Nevertheless, the streak of consecutive bullish candles has surpassed the 38.20% Fibonacci level at $0.1287, enhancing bullish momentum. This breakout also indicates a rounding bottom and breaks through a long-standing resistance trendline, ending the previous lower-high formation.
Dogecoin Sentiment Analysis
As the Dogecoin price trend improves, market sentiment is on a steady growth trajectory. Social media mentions of Dogecoin have increased by 11.48K, reaching a total of 32.79K in the past 24 hours.
Moreover, the number of content creators focusing on Dogecoin has risen by 1.21K, bringing the total to 10.24K. As social media activity grows, Dogecoin’s social dominance has increased by 1.25%, now accounting for 3.3% of the total crypto social market.
However, Dogecoin’s overall sentiment has dipped by 3%, currently sitting at 83%. Within this figure, 65% of market sentiment remains neutral, while 28% is positive. Negative sentiment stands at 7%.
Will Dogecoin Hit $0.20?
The dynamic average lines are poised for a bullish crossover as underlying sentiment shifts. The 20-day EMA has surpassed the 100-day EMA and is on the verge of crossing above the 200-day EMA. Similarly, an uptick in the 50-day EMA increases the likelihood of a bullish crossover with the 100-day EMA.
The DMI indicator shows the VI lines indicating a bullish divergence, accompanied by an uptick in the ADX line. This suggests a strong bullish trend momentum. Therefore, a trend reversal rally is plausible, signaling the end of the pullback phase for the meme coin.
Based on Fibonacci levels, Dogecoin has the potential to reach the peak of the trendline, slightly above the 78.60% Fibonacci level at $0.1827.
With an October rally underway in the crypto market, Dogecoin shows promise for reaching $0.20. However, a retest of the trendline breakout or the 38.20% Fibonacci level breakout at $0.12879 remains a possibility. Meanwhile, dynamic support at the 200-day EMA, currently at $0.11709, will likely hold firm.