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Dogecoin (DOGE) has made a remarkable comeback, bouncing off the crucial support level of $0.19 and forming higher lows. As a result, many are wondering what could spark the next rally for this popular cryptocurrency.
First and foremost, it’s essential to acknowledge that Dogecoin recently broke above the $0.19 zone, which had previously acted as resistance in May and early June. This significant shift in structure has led many analysts to believe that the price may continue its upward trajectory, with a potential target of $0.25 on the horizon.
According to Ali, a well-respected analyst, Dogecoin will likely continue targeting this level as long as it holds onto the $0.19 support. In fact, a sharp increase in volume could potentially push the price toward the upper end of its current range.
However, if momentum falters and the price drops back below $0.19, it would mark a significant breakdown in structure and likely result in a return to the $0.186-$0.182 zone.
Interestingly, Dogecoin’s Bollinger Bands have shifted to accommodate elevated volatility and upward pressure. Additionally, the cryptocurrency is still trading above its 20-day simple moving average, which serves as local support. The Relative Strength Index (RSI) on the daily chart sits at a neutral level of 58, allowing for additional upside if demand remains strong.
Furthermore, data from Glassnode reveals that there are currently 68,268 active Dogecoin addresses, indicating a surge in user activity following the price fluctuation. While this surge is not as extreme as those seen during earlier market cycles, it still suggests that interest and enthusiasm surrounding DOGE remain relatively high.
In conclusion, the current price action of Dogecoin suggests that a potential rally could be on the horizon.
Source: cryptopotato.com
