Dogecoin Breaks $0.20: Is a 30% Rally Coming Next?

Dogecoin (DOGE) has recently surpassed the significant psychological price point of $0.20, and both the hourly and daily charts suggest this movement could be sustained. The Dogecoin price appears to be emerging from a consolidation phase, potentially positioning itself for a substantial move toward the $0.26–$0.28 range in the near future. Let's examine the charts to understand why this breakout might only be the beginning.

Dogecoin Price Prediction: Insights from the Hourly Chart

The 1-hour chart indicates that DOGE price recently breached local resistance at $0.20 with increasing momentum. This level had previously acted as a resistance barrier for several days, and the breakout was supported by higher lows, forming an ascending triangle – a bullish intraday pattern.

The price is currently hovering around $0.203, exhibiting low selling pressure and strong green candles, suggesting that buyers are in control.

Fibonacci retracement levels, measured from the recent swing high around $0.21 to the swing low near $0.18, reveal that DOGE has reclaimed the 0.618 golden ratio and is now testing the 0.786 level, often a precursor to accelerated price movements.

If this breakout holds, the next resistance level for Dogecoin price lies around $0.21. A successful break above this level could lead to a rapid surge towards $0.23 and potentially even $0.26.

Daily Chart Analysis: A Bullish Shift in the Broader Perspective?

The daily chart reinforces the bullish short-term momentum. DOGE price is up, reclaiming the 50-day SMA, which is currently around $0.2017. This is noteworthy because the 50-day SMA has acted as a dynamic resistance level in recent weeks.

Furthermore, the Dogecoin price is forming a short-term double bottom pattern with support near $0.16, and the neckline at $0.203 is currently being tested. If DOGE manages to close a daily candle above this neckline, the classic double-bottom pattern projects a target of approximately $0.25. The calculation is as follows:

Target = Neckline + (Neckline – Bottom)
Target = $0.203 + ($0.203 – $0.16) = $0.203 + $0.043 = $0.246

This represents an upside of approximately 22.5% from current levels.

Adding to the bullish outlook, the 20-day SMA has crossed above the 100 SMA – a medium-term bullish signal. The 200 SMA remains higher, and could serve as a potential upside target if momentum continues.

Dogecoin Price Prediction: Potential for DOGE Price to Reach $0.26?

Based on the bullish hourly structure and confirmation from the daily breakout, DOGE price appears poised to target the $0.25–$0.26 range, assuming Bitcoin maintains support and overall market sentiment remains positive.

Assuming the breakout is sustained and volume increases, the following scenario seems plausible:

• Minor resistance at $0.21
• Bullish breakout to $0.23 (short-term Fibonacci extension)
• Final upside target $0.25–$0.26 (double bottom target)

From the current price of $0.203, a move to $0.26 would represent a gain.

In Conclusion

Dogecoin price is exhibiting strong bullish signals on both shorter and longer timeframes. The reclaim of $0.20 is more than just a number – it signifies a break of a psychological barrier, confirms a reversal pattern, and attracts new buyers. With momentum building and key moving averages showing positive signs, DOGE could be preparing for a rally.

As always, it's crucial to monitor for a confirmed daily close above $0.21 and keep a close watch on Bitcoin's performance. If the broader market remains stable, Dogecoin could potentially surprise with a significant run.