Dogecoin (DOGE) has made an impressive increase of 28.8%, climbing from $0.075 to a recent peak of $0.091 during the past two weeks. This price surge has been supported by the positive investor sentiment, which is fueled by Dogecoin’s recent association with various space programs. During this ascent, DOGE price broke above the resistance trend line of a long-standing triangle formation, indicating a potential trend reversal.
Dogecoin Price Analysis
For over two years, Dogecoin’s price has been trapped between the converging trend lines of a symmetrical triangle formation. This chart pattern has put the altcoin into a prolonged consolidation phase following a significant downtrend from May 2021 to May 2022.
Indeed, as the cryptocurrency market has gradually entered a recovery mode, DOGE price has experienced a strong rally since mid-October. The price surged from $0.0572 to $0.089, registering a growth of 55% in just two months.
Particularly on December 2nd, buyers caused a significant change in market sentiment by pushing the price above the upper boundary of the triangle formation on the chart. According to the logic of the formation, each high swing that tests the upper trend line can serve as a target for the triangle formation, potentially leading to a significant increase of 78.84% in the trajectory of DOGE price towards $0.22. However, there are resistance levels at $0.105 and then $0.132 in this expected rally.
Dogecoin and Bitcoin Price Performance
Compared to Bitcoin, both cryptocurrencies have seen significant recovery in their prices in the past two weeks. While Bitcoin’s price has consistently risen, Dogecoin’s price trajectory occasionally experiences pullbacks. Therefore, DOGE investors need to resist against these corrections and see them as buying opportunities.
The upward movement at the upper boundary of the Bollinger Band (BB) indicator in the daily timeframe price chart reflects the aggressive stance of buyers in the altcoin. Furthermore, the bullish crossover between the Moving Average Convergence Divergence (MACD) indicator and its signal line suggests an ongoing recovery in DOGE without any deterioration.