Dogecoin (DOGE) surged 26% this week, gaining everyone’s attention, rising to around $0.2025. This rally comes as DOGE’s trading volume remains stable at $3.99 billion for a market capitalization of $29.71 billion, up 3.72% over the past 24 hours.
As the cryptocurrency approaches the $0.2290 resistance level, optimism is rising among traders who speculate it could return to the formidable $0.27 barrier last tested in late 2021. However, the question remains: will DOGE be able to maintain its momentum and challenge this barrier or turn a profit? -taking measures to mitigate the upward trajectory?
Dogecoin daily chart forms a bullish golden cross
When analyzing the daily chart patterns, the Golden Cross emerged – a bullish technical indicator in which the 50-day moving average crosses the 200-day moving average – reinforcing the long-term uptrend. This formation often signals the start of a sustained price increase, which corresponds to increased buying interest in DOGE.
Additionally, the token price decisively surpassed the 0.786 Fibonacci retracement level at $0.1832, a critical level that often separates minor corrections from a full bullish reversal. This implies strong buying pressure and suggests DOGE may be poised for an even bigger breakout in the coming days.
The next targets on the chart are $0.2290 and, finally, the long-awaited level of $0.27. In addition to this momentum, Dogecoin’s weekly price action is showing solid support above $0.14, with the 200-day SMA now around $0.1281, providing strong protection against potential downsides. The recent rally also saw the DOGE token well above the 0.5 Fibonacci level at $0.1358, further strengthening the bullish outlook.
DOGE On-Chain Metrics Show Bullish Support
Adding another layer to the bullish Dogecoin narrative, the global money in/out chart shows that approximately 88.64% of all DOGE addresses are “in the money” at $0.2019. This means that these addresses hold Dogecoin at a price lower than or equal to the current value.
This percentage also indicates that many holders have already taken profits, reducing the likelihood of immediate sell-offs and increasing the potential for further upward momentum. Meanwhile, only 9.79% of addresses are out of the money, with DOGE prices exceeding their original purchase level. Additionally, the Money In/Out Around Price metric, which focuses on addresses that bought between $0.166 and $0.226 worth of cryptocurrency, shows that 66.46% of these addresses remain profitable.
This suggests that the DOGE token has built a strong base of support in this price range, providing a strong base in case the price encounters resistance near $0.2290. On the other hand, the data also shows that 32.40% of these addresses are “out of the money” as the meme coin is hovering around the $0.2019 level, suggesting possible selling pressure if prices reach certain resistance points.
Dogecoin Price Prediction: Will DOGE Return to the $0.27 Barrier?
Assuming the DOGE token manages to break through the $0.2290 resistance level, it could easily rise to $0.27, a psychological barrier that could trigger a new wave of buying activity. Beyond $0.27, the next critical resistance is likely to appear around $0.30, where more traders may try to take profits.
However, the cryptocurrency could see a temporary pullback if it fails to break above the $0.2290 level. In this downside scenario, immediate support exists near the .786 Fib level at $0.1832. Below that, the .618 Fib level at $0.1537 could serve as a support level, cushioning the token from a deeper correction.
