‌Dogecoin Forms Weekly Mini Cycles as Price Pushes Toward $0.21, Here’s Why Bulls Aren’t Backing Down

Dogecoin is exhibiting a pattern of consecutive weekly higher highs, indicative of robust demand and a prevailing bullish market sentiment.

The crucial support level between $0.142 and $0.160 is holding steady, suggesting the potential for another breakout towards the $0.21 mark. Should the $0.16 level remain intact, indicators such as the RSI, MACD, and MVRV hint at a forthcoming bullish reversal.

Currently trading at $0.1651, Dogecoin demonstrates a compelling pattern of weekly consolidation followed by upward price movement. Market analysts observe that each cycle culminates in a higher high, underscoring sustained demand growth. The existing market structure implies a potential continuation of price recovery in the short term.

Bulls Defend Key Support as Price Forms Higher Highs

Analysis indicates that Dogecoin has been maintaining a pattern of mini weekly cycles. The asset typically ranges for several weeks preceding each breakout, with each breakout establishing a new higher high. This trend, observable since late 2024, reflects an increasing interest in Dogecoin.

The recent rebound from $0.142 further validates the significance of the demand zone between $0.142 and $0.160. This same level provided support for strong price rebounds in both March and April. On both occasions, Dogecoin rallied over 40% in the ensuing weeks, supported by increased trading volume and a positive market sentiment.

The recent defense of this zone is consistent with historical price action. According to analysts, Dogecoin may be entering a bullish reversal phase. If bullish momentum drives the price above the current consolidation zone, the next significant resistance level is situated near $0.21.

Indicators Support Continued Uptrend Toward $0.21

Technical indicators are now displaying signs of recovery. The RSI is nearing oversold levels, signaling diminished selling pressure. The MACD is approaching a bullish crossover on the daily chart, potentially confirming the ongoing reversal trend if it materializes.

Data indicates that the 30-day Market Value to Realized Value (MVRV) ratio has decreased to -15.43%. This suggests that a considerable number of traders are currently holding positions at a loss, which may discourage selling and thus support price recovery.

It is crucial that Dogecoin maintains support above the $0.16 level to avert a more substantial correction. Should bullish momentum persist and the price break above $0.21, the asset could target higher levels, bolstered by historical patterns of strong recovery.