Dogecoin price prediction: meme coin surges 6% as bulls eye $0.20 breakout

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  • The meme coin segment’s market cap grew 8.60% to $56.47 billion.
  • Coinglass data shows 63.66% of Dogecoin derivatives traders are holding long positions.
  • Fibonacci levels highlight $0.2131 as the next major target after $0.20.

Dogecoin is once again capturing market attention as Bitcoin maintains its stronghold above $93,000.

Over the last 24 hours, the meme coin segment has experienced a sharp 8.60% increase in total market capitalisation, reaching $56.47 billion.

Leading the charge, Dogecoin’s value rose by 4.30%, lifting its market cap to $27.o3 billion.

With DOGE now hovering around $0.18, traders are closely watching for a decisive move past the psychological $0.20 barrier.

Source: CoinMarketCap

As bullish momentum builds, questions arise about whether Dogecoin is preparing for a sustained breakout or even a potential doubling in value.

Dogecoin price breaks wedge pattern as bulls regain control

On the daily chart, Dogecoin’s price shows a clean bullish breakout from a falling wedge formation.

This key technical move materialised with a strong 12% surge on 22 April, resulting in a bullish engulfing candle.

The rally has helped DOGE push above the 50-day exponential moving average (EMA) and the 23.60% Fibonacci retracement level at $0.1820.

As bullish candles continue to form, the breakout hints at the beginning of a trend reversal.

At present, Dogecoin is grappling to hold its ground above the 23.60% Fibonacci mark.

Meanwhile, momentum indicators such as the moving average convergence divergence (MACD) show positive developments.

The MACD and signal lines are nearing entry into positive territory, accompanied by newly emerging positive histograms.

With price action clearing the 50-day EMA, the next dynamic resistance sits near the $0.20 psychological level and the 100-day EMA.

Should Dogecoin’s momentum persist, Fibonacci projections suggest the next immediate target lies at $0.2131, aligning with the 38.20% retracement level.

Derivatives data show rising bullish sentiment for Dogecoin

As Dogecoin’s price inches higher, bullish sentiment across the derivatives market is gathering steam.

According to data from Coinglass, long positions in Dogecoin derivatives have significantly increased over the past few hours.

The long-to-short ratio now stands at 1.7518, with approximately 63.66% of traders taking long positions.

This notable rise indicates growing optimism about an extended rally and adds further strength to the ongoing recovery narrative.

The shift in derivatives positioning suggests that market participants are preparing for a continuation of the bullish breakout, particularly if Dogecoin can successfully secure a close above the $0.20 mark.

Analyst identifies potential 600% rally if trendline holds

Adding to the bullish outlook, popular crypto analyst Trader Tardigrade has presented a striking Dogecoin price prediction.

According to the analyst’s recent technical chart, a long-standing support trendline has historically fuelled rallies of 200% and 400% in Dogecoin’s price.

Building on this pattern, the analyst forecasts the possibility of a 600% surge if the trendline holds. Such a move would place Dogecoin’s price near $0.93.

Although this scenario paints a highly optimistic picture, the historical success of the trendline offers some basis for the bullish projection.

Nevertheless, broader market conditions, Bitcoin’s stability, and retail enthusiasm are likely to play critical roles in determining whether Dogecoin can achieve such ambitious price targets in the coming months.

The post Dogecoin price prediction: meme coin surges 6% as bulls eye $0.20 breakout appeared first on CoinJournal.

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