An Upward Breakout for Dogecoin (DOGE) Could Trigger a Rally of 20% or More

Let's take a look at the ways in which Dogecoin's recent upturn might give DOGE more room to grow in value.

The Dogecoin price (DOGEUSD) may also experience a rally after the recent short liquidations, as is typical with cryptocurrency prices. Dogecoin (DOGEUSD) purchasing instructions. Best choices from the BeInCrypto catalog

Are the bears going to leave?

Dogecoin, a widely used memecoin, has seen its price surge 11% in the last day as the cryptocurrency market as a whole has rallied. Traders who had bet on a price decline ended up losing money because of this. There were nearly $7 million worth of short liquidations.

Compared to the previous two months, this is the biggest short position liquidation in a single day. It is anticipated that prices will rise in the following days following such large-scale liquidations, as history shows. While investors wait for a rally, the bears may pull back.

Profit projections of $1.28 billion have boosted investor confidence. The Global In/Out of the Money (GIOM) indicator shows that between $0.16 and $0.18, about 7.87 billion DOGE tokens were bought.

The recent uptick in the price of Dogecoin suggests that these coins could become lucrative soon. But we need to break through the $0.16 resistance level for this to happen. If DOGE holders are anticipating a profit soon, they will likely drive the altcoin price up until it reaches $0.18. The rally could get a boost from this.

DOGE Projection: The Limits of Growth

The price of Dogecoin has been following an ascending triangle pattern for the past month. The combination of an ascending trend line and a horizontal resistance line indicates a bullish continuation pattern. It usually means that buyers are getting stronger, which means that the resistance level will be broken.

Trading volumes for DOGE have been falling steadily as of late, and the cryptocurrency is currently battling to break out of this pattern. A 22% increase to $0.20 for the coin would confirm the pattern. This pattern's target and a crucial psychological level is this critical price point.

Nevertheless, a more practical result would be for the price to hit $0.18, which would put the supply volume mentioned earlier into the profitable range.

But if we can't get past $0.16, we might see prices retrace into the pattern. Dogecoin might fall to $0.15 or even lower if this happens, as it would signal a false bullish breakout. Because of this, we will conclude that the best-case scenario is impossible.