Dogecoin seems to have flipped into a bullish momentum, at least in the short term, prompting analysts to predict bullish outlooks in the short term. Particularly, DOGE is up by 7% in the past 24 hours and is still on a 14% increase in the past 3 days.
Current price action shows the cryptocurrency is moving to break past a resistance level of around $0.16. A crypto analyst known pseudonymously as World Of Charts believes the potential of this breakout happening is very strong and DOGE is primed for a surge to a price target between $0.27 to $0.30, which represents a 100% surge on the upper end.
Major Dogecoin Metric Explodes
Doge is starting to turn bullish in a number of metrics, which in turn has increased investor interest. One of these metrics is the DOGE open interest across crypto exchanges. At the time of writing, Dogecoin’s open interest has spiked by over 12.47% in the past 24 hours to reach $883.89 million in the past 24 hours, according to Coinglass data.
Other metrics, such as an increase in derivates volume and a 14.4% increase in trading volume in the past 24 hours, also point to increased activity for DOGE, which in turn could lead to a significant price uptick.
According to a 12-hour timeframe Dogecoin chart shared on social media platform X by World Of Charts, DOGE is on the verge of breaking out of a descending triangle. This chart shows DOGE has been on an interesting price action formation of lower highs with equal lows since the beginning of April.
This form of descending triangle is particularly a strong bullish indicator for Dogecoin analysts, especially considering it started to form after a strong DOGE uptrend in February and March. When this pattern occurs within an established uptrend such as this, it generally indicates corrections before the trend continues.
The analyst remarked that DOGE is “on verge of another breakout.” As per his analysis, a successful breakout would push DOGE on the uptrend continuation and a move towards $0.27 to $0.30 for the first time since October 2021.
Despite going on an 182% price increase in February and March, DOGE is yet to break into $0.27 this year. The cryptocurrency peaked at $0.22 before spiraling down and correcting to $0.13, representing a 40% decrease.
At the time of writing, DOGE is trading at $0.156 and could keep surging for the rest of the month. The first step before reaching $0.3 is to break above a resistance around $0.167, If DOGE can surge above $0.17 and the bulls hold this price level, it could continue climbing to $0.22 and beyond.
Chart from Tradingview.com
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