There was a significant uptick in the value of Dogecoin [DOGE] recently, with its price experiencing a substantial increase. Concurrently, the leading meme-based cryptocurrency also broke out of a bullish formation, signaling a potential sustained uptrend in the upcoming period.
Breakout Success for Dogecoin
Last week, DOGE witnessed a remarkable surge of 20% in its price, bringing joy to investors. This surge resulted in over 4.9 million Dogecoin addresses being in profit, representing more than 72% of all DOGE addresses.
An interesting observation was made by World Of Charts, a renowned crypto analyst, who shared a tweet unveiling a bullish falling wedge pattern on the price chart of DOGE.
The formation of this pattern dates back to March, with the price consolidating within it. At present, Dogecoin has broken out of this pattern. The tweet suggested that this breakout could potentially trigger a near 100% price rally in the following days or weeks.
On the flip side, there was some negative news as well.
The fear and greed index for Dogecoin, reviewed by CryptoCrypto, indicated an “extreme greed” sentiment. Historically, such levels of the indicator often precede price corrections.
Key Price Levels for DOGE
Consequently, CryptoCrypto delved deeper into Dogecoin’s daily chart to gain more insights. It was observed that Dogecoin’s price had touched the upper boundary of the Bollinger Bands, a development that typically leads to price corrections. However, the MA Cross for DOGE signaled that the market was still being led by bullish momentum, with the 9-day MA comfortably above the 21-day MA.
As per our assessment, the successful confirmation of the bullish breakout pattern will be critical for Dogecoin to surpass the $0.13 mark, as significant liquidations are expected at that level.
In a bearish scenario, Dogecoin could soon experience a decline to $0.11 as per the current charts.