Triangle Breakout Indicates a Potential Bull Run
The recent uptick in the crypto market sentiment has had a positive impact on Dogecoin (DOGE), leading to a significant increase in its price. The coin has broken out of a year-long accumulation phase and is showing early signs of a trend reversal. The breakout from the triangle pattern suggests that the recovery trend will continue.
Furthermore, the bullish crossover between the 100-day and 200-day exponential moving averages (EMA) is expected to accelerate the recovery momentum. This indicates that the DOGE price has strong potential for further growth.
In addition, the 24-hour trading volume in Dogecoin has increased by 58%, reaching $2.58 billion. This high trading volume further supports the bullish outlook for DOGE.
Dogecoin Achieves Bullish Breakout
On December 2nd, Dogecoin achieved a bullish breakout from the resistance trendline of a symmetrical triangle pattern. This breakout propelled the coin price to a 7-month high of $0.105. Additionally, on its 10th anniversary, Dogecoin experienced an additional surge of 13%, challenging the overhead resistance.
As the DOGE price continues to ride the momentum of the triangle pattern, it has the potential to reach targets between $0.16 and $0.22, provided that the buying pressure is sustained.
However, there may be a minor retracement at the immediate resistance level of $0.105. In such a scenario, DOGE holders can consider using the 38.2% or 50% Fibonacci retracement levels as strategic points for setting stop-loss orders to manage risk.
DOGE Futures Open Interest Soars
The open interest in DOGE futures, which represents the total value involved in active futures and perpetual futures contracts, has experienced a significant surge. In just two weeks, it has increased by $405 million to reach $625 million. This is the highest recorded open interest in over a year, indicating growing investor confidence and interest in Dogecoin.
Technical Indicators
- The Average Directional Index (ADX) slope of 35% suggests that the buying momentum may be nearing exhaustion, potentially leading to a minor pullback.
- The ongoing recovery is supported by the 20-day and 50-day exponential moving averages (EMA), which have acted as reliable support levels during pullbacks.
Hot Take: Dogecoin’s Bull Run Continues
Dogecoin’s recent breakout from a year-long accumulation phase and its bullish trendline breakout indicate that a potential bull run lies ahead. The coin has shown significant momentum and has reached a 7-month high. With sustained buying pressure, DOGE has the potential to reach targets between $0.16 and $0.22. However, there may be minor retracements along the way, so it’s important to set strategic stop-loss orders to manage risk. The surge in DOGE futures open interest further supports the growing investor confidence in Dogecoin. Overall, the future looks bright for DOGE as it continues its upward trajectory.
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