Key Insights:
- Dogecoin (DOGE) traded near $0.22 as short-term breakout signals bullish strength building.
- Analyst ali_charts suggests a possible pullback to $0.213 before any move higher.
- The daily channel pattern indicates a potential rally if DOGE holds above key support levels.
Dogecoin price is holding at $0.2195, reflecting both bullish and bearish market sentiments. Traders are watching closely as momentum shifts in different directions.
While some analysts believe the price could rise again, others think it might drop in the short run. Traders are closely monitoring key areas due to mixed sentiment. The $0.213 level is attracting particular attention.
As the chart shared by ali_charts shows, Dogecoin price could soon reach the $0.213 level again. The price faced rejection at nearly $0.2310, preventing further upward movement. As a result, it failed to maintain higher support zones, leading to the forecast.
Every time the price tries to climb above $0.2310 on the 1-hour chart, it is quickly sold off. The $0.2380 level has remained strong, and the trend of lower highs indicates that the market’s momentum is decreasing.
Short-Term Breakout of Dogecoin Price Contrasts with Bearish Reversal Risk
While the long-term chart is bearish, the shorter-term charts indicate that the market is moving up. According to Trader Tardigrade, a 15-minute chart reflects that DOGE is breaking out of a tight range between $0.2230 and $0.2255.
The rise in RSI indicates that buyers are gaining momentum in the market. Once the breakout occurred, Dogecoin price reached $0.2280 but met resistance. Although the price is still below important levels, the market has shifted into an uptrend due to buyers taking charge.
The sudden price rise happened after a long period when prices were not moving much. The move did not last above $0.2280. However, the signs suggest bullish momentum may continue if the market and trading volume support it.
Falling Channel Pattern Could Set Up Larger Move
Looking at the daily chart, we can see Dogecoin is moving within a sloping channel. This is the second time this has happened in recent weeks.
The first channel ended in late April when the price broke out and rose sharply. Currently, the channel goes from $0.1900 to $0.2400, and the price is generally around $0.2240.
Based on the chart, the price may keep moving within the channel before attempting to break out. The shape of the pattern suggests that, in the past, a W-formation in the channel led to higher prices. If the market breaks above the channel’s top line, it could revisit the level at $0.2650.
At the moment, the $0.213 level is very important for Ethereum. When the price revisits the suggested level, it could help the market bounce back within the overall pattern. However, if the price falls below the level, it could end the channel breakout and make the asset retreat further.
On-chain data introduces an extra aspect to the existing system. Based on Coinglass, the funding rate for Dogecoin has generally been positive over the past two weeks.
It has reached 0.0089%, meaning there are more long positions than short ones in the futures market.
When the funding rate is positive, traders pay to keep long positions, indicating they expect the market to rise. Since the funding rate and price are positively correlated, investors are still interested, suggesting the price could increase.
At the same time, Bitcoin dominance charts indicate that the market may be experiencing a “Dead Cat Bounce.”
According to MerlijnTrader, altcoins might attract more capital once Bitcoin dominance declines. If this occurs, Dogecoin price might pick up speed even after a brief test of $0.213.
During the beginning of altseason, it is common for funds to move from Bitcoin to altcoins. If Bitcoin’s dominance falls below 63%, it could indicate that people are buying more altcoins such as DOGE.
