Dogecoin Price Is Set For A Sharp Rally If It Breaks This Barrier

Like many major cryptocurrencies facing high volatility during the last few weeks, the Dogecoin price has resonated between $0.655 and $0.566 for nearly five weeks. This narrow range accentuates uncertainty in coin holders but reveals a well-known technical setup to take a trade.

Key points:

• The $0.065 breakout should drive the dogecoin prices to $0.0756
• The daily-RSI slope jumps into bullish territory.
• The 24-hour trading volume in the Dogecoin coin is $617.8 Million, indicating a 192% gain.

 Source-Tradingview

The daily technical chart shows a rectangular pattern where the Dogecoin price keeps resonating between the aforementioned levels. The altcoin has repeatedly retested the extreme levels for this pattern, indicating that traders are actively responding to these levels.

Furthermore, altcoin witnessed a significant inflow today, backed by a rumor that dogecoin will be the native token for Twitter after the Elon musk takeover. As a result, the coin price jumped 8% today and retested the $0.655 resistance.

With a strong pump in volume activity, the buyers attempt to reclaim this monthly resistance. A daily candle closing above the $0.655 resistance will provide a higher footing for buyers and resume the prior recovery. 

This post-breakout rally may drive the prices 16% higher to hit $0.76. 

On a contrary note, if the Dogecoin price remains below the $0.655 resistance, the ongoing consolidation will extend for a few more sessions.

Technical indicator

EMAs: the rising coin price reclaims the 20-and-50-day EMAs 

MACD indicator: A bullish divergence in MACD and signal line concerning the sideways price action indicates growing bullish momentum. Moreover, these lines may soon jump above the neutral line offering additional confirmation for bulls.

Bollinger band indicator: the sudden price hits the indicator’s upper band, which provides an additional barrier against buyers. Previously a retest to this level has triggered a new bear cycle within this rectangle.

Dogecoin Price Intraday Levels

• Spot rate: $0.0639
• Trend: Sideways
• Volatility: High
• Resistance levels- $0.065 and $0.076
• Support levels- $0.056 and $0.048