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Dogecoin, after a prolonged wedge breakout, is testing the 50-day exponential moving average (EMA), signaling significant upside potential.
Following a bullish reversal within a falling wedge pattern, Dogecoin has broken through a resistance trendline that had persisted for five months. This trendline had driven Dogecoin’s decline from its 52-week high of $0.22899 to a recent low of $0.08049 as of August 5.
DOGE Breakout Roll Exceeds $0.10
On the daily chart, Dogecoin’s recovery has pushed it above the key $0.10 psychological level and breached the overhead trendline. Currently trading at $0.10510, the coin has gained 2.35% intraday, forming a new bullish engulfing candle. Over the past 39 days, DOGE’s price has surged by 30.62%, indicating a robust bullish cycle.
Dogecoin Price ChartThe rising bullish momentum in Dogecoin is reflected by a positive crossover between the MACD and signal lines, with increasing positive histograms. However, the key daily EMAs (50, 100, and 200) are currently aligned bearishly, with the 100-day (green) and 200-day (blue) EMAs recently crossing negatively.
Dogecoin’s recovery rally is testing the 50-day EMA (yellow), which is acting as dynamic resistance. A bullish breakout above this average could signal a new buying opportunity for traders.
If the upward trend continues, Dogecoin could target resistance levels at $0.1130, $0.1402, and $0.1739. Conversely, if it struggles to maintain its position above the $0.10 psychological mark, potential support levels are at $0.09783 and $0.09253.
Elon Musks Seeks The Title “Dogefather”
In a recent appearance on the All In Podcast, tech billionaire Elon Musk reignited enthusiasm for Dogecoin by recreating a classic scene from The Godfather with a crypto twist.
Adopting the role of the “Dogefather,” Musk donned a tuxedo and channeled Don Vito Corleone’s iconic tone, even declaring, “Call me the Dogefather.” His charismatic portrayal has significantly heightened bullish sentiment in the crypto community, fueling a surge in Dogecoin demand.