Dogecoin To The Moon? Price Eyes $0.27

Dogecoin (DOGE) may be poised for a significant price increase after months of sideways trading. Recent price action, technical indicators, and macroeconomic factors suggest a bullish outlook.

Technical Breakout from Descending Channel

Analysis indicates DOGE has broken out of a descending channel that had constrained price gains since the beginning of the year. This breakout is reinforced by a successful retest of previous resistance, now acting as support, suggesting a bullish reversal.

Immediate resistance is at $0.27, but sustained bullish momentum could drive DOGE towards $0.39 and potentially $0.43 in the coming weeks. Support around $0.17 offers a cushion against short-term pullbacks.

Short-Term Price Action and Elliott Wave Analysis

Dogecoin is currently experiencing a minor corrective phase, remaining above key support between $0.17 and $0.1777. This area previously served as micro-support, suggesting the start of a fifth wave in an Elliott Wave sequence.

Analysts predict a potential three-wave upward movement, with Wave 3 potentially peaking near the 138% Fibonacci extension at $0.196. If this pattern holds, Wave 5 could reach the 161.8% level at $0.206 or the 178.6% level at $0.213. A decisive break above $0.185 would strongly indicate the start of the next bullish leg.

However, a significant drop below $0.17 could temporarily delay the expected rally. Currently, the pullback seems corrective and minor, consistent with an ongoing uptrend.

Macro Trends: Bitcoin, Global M2, and Dogecoin Correlation

Beyond technical analysis, macroeconomic indicators bolster the bullish case. Analysts are noting a correlation between cryptocurrency prices and the global M2 money supply (a measure of the world's money supply).

One analyst suggests a consistent pattern exists between increases in M2 and DOGE price rallies when applying a 110-day offset, excluding outliers like the post-Trump-election price surge. Increased liquidity flowing into assets like DOGE, particularly during the summer months, could strengthen this correlation and reinforce the bullish technical outlook.