Dogecoin Is ‘Bouncing from Legendary Support’, Here’s Why Traders Are Targeting $1.179

Dogecoin is exhibiting signs of renewed strength as it rebounds from a well-established support level near $0.1469. This price zone has historically served as a foundation for upward movements, and analysts suggest that maintaining this setup could pave the way for significant price action in the coming months.

Golden Cross Formation and Fibonacci Targets Suggest Potential Breakout

Analysis indicates that Dogecoin is approaching a golden cross on the weekly chart. This bullish technical pattern, characterized by the 10-week simple moving average crossing above the 20-week moving average, has historically preceded substantial gains, sometimes exceeding 200%, in past cycles.

Source: KamranAsghar(X)

Currently, Dogecoin is trading just below the $0.22 mark, a level identified by analysts as a key resistance point. Overcoming this hurdle is considered crucial for Dogecoin to target higher price levels. A successful breakout above $0.22 could propel the price towards Fibonacci extension targets of $0.4355 and potentially $1.179.

Analyst Surf, utilizing monthly charts, has also highlighted these targets, referencing Fibonacci 1.618 and 2.618 extensions. These extensions are frequently used to forecast long-term price ranges during new market cycles. Furthermore, the price structure on monthly timeframes reveals a pattern of higher lows, reinforcing the notion of an ongoing recovery.

Derivatives Data Reflects Growing Bullish Sentiment

Data from Coinglass reveals a 1.75% increase in open interest for Dogecoin futures, reaching $1.82 billion. This increase indicates a growing allocation of capital towards long positions on major exchanges such as Binance and OKX.

Source: CoinGlass

Long/short ratios also remain positive, with Binance reporting a ratio of 2.89 and OKX reporting 3.65. These figures suggest that a larger proportion of traders anticipate a price increase rather than a decline.

The options market has experienced a significant surge in volume, with a 578% increase, indicating heightened speculative activity. With funding rates remaining neutral, analysts observe that leverage levels are manageable, positioning the market for a sustained rally if momentum builds above the $0.22 resistance level.