Dogecoin (DOGE) Breakout Slows Down but Still Has Momentum

Dogecoin's Potential Uptrend: Positive Indicators and Investor Optimism

Dogecoin's (DOGE) price exhibited signs of a potential upswing a week ago when it broke out of a bullish pattern. While the rally has been tempered by bearish market conditions, it remains in progress.

Investor Optimism

Dogecoin investors remain optimistic about a rally and are actively working towards it. Large wallet holders have been consistently accumulating DOGE since the beginning of the month. Addresses holding between $10,000 and $10 million worth of DOGE have added over $1.1 billion to their holdings. This suggests that investors anticipate a price increase and are taking steps to capitalize on it.

Bullish Cues

Despite the recent dip, DOGE is displaying bullish cues. The Moving Average Convergence Divergence (MACD) indicator supports this view. The MACD shows the relationship between two moving averages of a security's price and helps identify momentum changes, trends, and potential buying or selling signals.

The indicator maintains the bullish crossover it established three weeks ago. While the histogram has formed a double top, indicating a temporary waning of bullishness, the overall signal remains positive.

Price Prediction

At the time of writing, DOGE is trading at $0.165, hovering around the key support level of $0.168. The meme coin broke out of an ascending triangle pattern, suggesting a potential 22% rally.

DOGE remains on track to reach $0.200, the pattern's target. To achieve this, it needs to establish $0.182 as a support floor.

However, if DOGE falls below $0.163, it could drop to $0.151, invalidating the bullish thesis.