Dogecoin Price Holds Support After False Breakout: Potential Bull Run?

Dogecoin (DOGE) has shown resilience, holding above a key support level after a failed breakdown, suggesting a potential bullish trend. Market buying pressure emerged following this reversal.

Dogecoin's price action and technical indicators point towards a possible continuation of this bullish momentum.

Binance Traders Exhibit Strong Bullish Sentiment for DOGE

Binance data reveals that at 06:00 UTC on April 15, approximately 72.13% of traders held long positions in DOGE, compared to 27.87% with short positions. This 2.59 long/short ratio indicates significantly more bullish sentiment, bolstering confidence in further price increases.

Positive market sentiment persisted even during recent price dips. The Relative Strength Index (RSI) on higher timeframes, while previously trending downward, has contributed to this bullish outlook. This technical breakout suggests weakening selling pressure, with the RSI moving away from oversold territory – a significant development for meme-based assets like DOGE.

Source: X

The increase in long positions coincides with a short squeeze following a bear trap. The subsequent price rise fueled renewed confidence within the trading community. However, this bullish sentiment could lead to market volatility, as highly concentrated bets often create unstable conditions. Traders should monitor the market closely.

DOGE Breaks Out of Falling Wedge, Maintaining Key Support

DOGE broke out of a falling wedge pattern on the 1-hour chart. This pattern, forming since early March, consisted of converging downward-sloping trendlines. A brief dip below support on April 7 was quickly reversed, confirming the breakdown as false and triggering a price increase. This marks DOGE's first successful breakout from this wedge pattern since December 2024, indicating accumulating buying at lower price points. DOGE remains above $0.16, a previously significant resistance level. Continued price growth hinges on maintaining this level.

Source: X

Technical indicators support this potential price movement. Daily charts show a bullish divergence pattern in both Dogecoin's price and RSI. Historical price patterns suggest this could precede a significant upward move. The Percentage Price Oscillator (PPO) also indicates upward momentum and buyer dominance.

False Breakout Confirmed as Dogecoin Price Holds Above Crucial Support

The earlier breakdown below $0.1275 proved fleeting. DOGE quickly recovered and sustained trading above its support zone, invalidating the bearish signal. This represents a classic bullish reversal, as early sellers were essentially trapped, boosting buying pressure. This bullish trend is further reinforced by whale accumulation data. Since January 2024, whales have acquired 140 million DOGE, increasing their holdings from 8.85 billion to 8.99 billion. The Mean Dollar Invested Age (MDIA) of DOGE reaching a high of 116.0 points to strong investor holding behavior.

Source: X

The next key level to watch is a breakout above $0.2285, the highest swing high since March 9. Sustained trading above current support and a break above this resistance could signal a broader bullish trend. Conversely, a fall below $0.1275 might bring the lower support level of $0.0930 into play.

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