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Will Dogecoin (DOGE) continue its breakout rally and experience a parabolic rise this week?
The altcoin cryptocurrency market is seeing a significant 5% uptick. Amid this recovery, Dogecoin surpassed its $0.35 psychological resistance, with its market cap reaching $53 billion.
As the largest meme coin in the crypto market, Dogecoin holds a dominance of nearly 50% in its segment. Will this upward trend propel Dogecoin beyond the $0.40 mark?
Dogecoin Price Analysis
Despite a strong bearish influence earlier in the week, Dogecoin remains above its 23.62% Fibonacci support level at $0.31385.
Following the projected double-bottom reversal mentioned in our previous article, Dogecoin has regained bullish momentum.
With the bullish divergence in the RSI supporting the recovery, Dogecoin’s price has risen near the 50% Fibonacci level at $0.3675. Currently, Dogecoin is trading at $0.3625, marking a series of consecutive bullish candles.
The chances of positive crossovers have increased significantly after rising above the 200 EMA line and the 38.20% Fibonacci level at $0.34356. Additionally, the 4-hour RSI has reached its overbought boundary, further supporting the likelihood of continued upward momentum.
Optimistic Speculations Rise in Dogecoin
As Dogecoin’s recovery rally gains strength, open interest in the coin has also increased. With a 10.83% rise in the past 24 hours, Dogecoin’s open interest now stands at $4.39 billion.
Although the long-to-short ratio of 0.9964 indicates a slightly higher number of bearish positions, the volume-weighted funding rate for Dogecoin has surged to 0.0098%. This suggests traders are willing to pay a premium to maintain their bullish positions.
In particular, the derivatives data points to a potential uptrend continuation, supported by rising open interest, an increasing funding rate, and an improving long-to-short ratio.
DOGE Price Targets
The breakout at the neckline level of $0.34356 continues to gain momentum, raising the likelihood of a sustained bullish trend. Over the past 24 hours, Dogecoin has risen by 5.26%, reinforcing its position in an uptrend.
As bullish momentum builds, Dogecoin is likely to reach the $0.39159 mark at the 61.80% Fibonacci level. However, if the broader market experiences a slowdown, a potential retest of the 38.20% Fibonacci level at $0.34356 is also possible.