Dogecoin Surges: Can DOGE Recapture the $0.27 Mark?

Dogecoin (DOGE) has ignited a rally, surging 26% this week and soaring to approximately $0.2025. This surge has been fueled by robust trading volume reaching $3.99 billion and a burgeoning market cap of $29.71 billion, representing a 3.72% increase in the past 24 hours.

As DOGE approaches the $0.2290 resistance level, optimism swells among traders anticipating a retest of the formidable $0.27 barrier, last tested in late 2021. The question remains: can DOGE sustain its momentum and challenge this threshold, or will profit-taking dampen its ascent?

Bullish Signals from Daily Chart

The daily chart patterns reveal a Golden Cross, a bullish technical indicator signaling a long-term uptrend. This formation bolsters the notion of sustained price appreciation, aligning with the heightened buying interest in DOGE.

Moreover, DOGE has decisively surpassed the 0.786 Fibonacci retracement level at $0.1832, a pivotal level often separating minor retracements from a complete bullish reversal. This suggests intense buying pressure and positions the cryptocurrency for an even further upward breakout.

The chart's immediate targets include $0.2290 and, ultimately, the much-anticipated $0.27 level. Dogecoin's weekly price action exhibits robust support above $0.14, with the 200-day SMA hovering around $0.1281, providing a safety net against potential dips. The recent rally has also pushed DOGE well above the 0.5 Fibonacci level at $0.1358, further solidifying the bullish outlook.

On-Chain Metrics Reinforce Bullishness

Dogecoin's bullish narrative finds further support in on-chain metrics. The Global In/Out of the Money chart indicates that approximately 88.64% of all DOGE addresses are "In the Money" at $0.2019. This implies that these addresses hold Dogecoin at a price below or equal to the current value, reducing the likelihood of immediate sell-offs and bolstering the potential for continued upward momentum.

Meanwhile, only 9.79% of addresses are "Out of the Money," with DOGE prices above their initial purchase level. Additionally, the In/Out of the Money Around Price metric, focusing on addresses that bought the cryptocurrency between $0.166 and $0.226, reveals that 66.46% of these addresses remain profitable.

This suggests that DOGE has established a solid support base within this price range, providing a buffer should the price encounter resistance near $0.2290. However, the data also shows that 32.40% of these addresses are "Out of the Money" as the meme coin hovers around the $0.2019 level, indicating potential selling pressure if prices approach certain resistance points.

Price Prediction: Can DOGE Reclaim the $0.27 Barrier?

If DOGE can conquer the $0.2290 resistance level, it could ascend to $0.27, a psychological barrier that could ignite a new wave of buying activity. Beyond $0.27, the next significant resistance is likely to emerge around $0.30, where traders may seek to secure profits.

Conversely, the cryptocurrency may experience a temporary pullback if it fails to breach the $0.2290 level. In this downside scenario, immediate support can be found around the 0.786 Fibonacci level at $0.1832. Below that, the 0.618 Fibonacci level at $0.1537 could serve as a support floor, shielding the token from a more severe correction.