Will This Push Dogecoin Price Past $0.22?

Dogecoin's price has experienced a slight decline amidst a broader market correction, yet technical analysts are observing a potentially bullish "golden cross" formation on the weekly chart.

This pattern, combined with encouraging derivatives data and Fibonacci-based projections, suggests that DOGE's price may soon attempt to break through the $0.22 resistance level. A successful breach could pave the way for targets between $0.4355 and $1.179 within the upcoming bullish cycle.

Dogecoin Price Forms Weekly Golden Cross

The current technical configuration places Dogecoin in a position with the potential for significant upward movement. According to analyst Kamran Asghar, DOGE's price is approaching a golden cross on the weekly chart, where the 10-week simple moving average (SMA) is poised to cross above the 20-week SMA. Historically, this cross has triggered substantial Dogecoin rallies of 232% and 313%.

Currently trading around $0.16, Dogecoin's price is consolidating just below the $0.22 mark. Analysts generally agree that this zone represents a critical hurdle. A breakout above this level would confirm a bullish continuation, enabling the pursuit of higher price targets. Waleed Ahmed has identified $0.22 on the chart as the final obstacle before reaching all-time highs.

Golden cross patterns are relatively infrequent on higher timeframes and often indicate favorable long-term potential. A series of higher lows on the weekly chart has contributed to supporting this setup, suggesting that momentum is gradually shifting in favor of the bulls.

Fibonacci Price Targets at $0.4355 and $1.179

Analyst Surf shared a monthly Dogecoin chart, highlighting crucial Fibonacci extension levels. His analysis indicates that the 1.618 extension aligns with a target of $0.4355, while the 2.618 level is projected to reach $1.179. These levels are contingent upon the impulse wave and retracement structure observed in the previous cycle.

However, Dogecoin's price must first overcome the $0.22 resistance before these targets can be realistically considered. The monthly candles, however, reveal a strengthening market structure characterized by consistently higher lows. Should the leading meme coin successfully surpass the $0.22 level and sustain the breakout with substantial volume, the Fibonacci path could serve as a valid benchmark for long-term gains. Historically, price action supports this. The last time Dogecoin's price broke through its local resistance in 2021, it surged by over 800% within weeks. While such gains cannot be guaranteed, there are indications of similar structural patterns emerging.

Derivatives Metrics Support Bullish Continuation

Derivatives and on-chain data corroborate the increasing interest in long positions. According to Coinglass data, Dogecoin's open interest has risen by 1.75% to $1.82 billion, suggesting that capital is being allocated to DOGE contracts on exchanges like Binance and OKX.

Long/short ratios have become noticeably skewed towards longs. On Binance, the ratio for DOGE/USDT stands at 2.89. On OKX, it is even higher at 3.65. These figures suggest that most traders are positioning themselves for an upward movement rather than anticipating downside risk.

Furthermore, the volume of options has increased by 578%, indicating a surge in speculative demand. Although the options open interest has decreased by 75%, it may suggest that traders are adopting directional trading strategies with fewer hedges. Collectively, these figures provide a strong argument that sentiment aligns with a bullish technical outlook.

Funding rates are also relatively neutral, indicating that leverage levels are not excessively stretched. This improves the conditions for a long-term rally, as the probability of forced liquidations in the short term is minimized.

Dogecoin Price Must Break $0.22 to Confirm Bullish Momentum

For the current bullish setup to materialize, Dogecoin's price must maintain support above $0.16. This level has served as a demand zone for several weeks. A breakdown below this level would invalidate numerous bullish scenarios, including the golden cross and wedge formations.

However, should DOGE successfully move above the $0.22 resistance on the weekly or monthly timeframe, analysts predict that the price will accelerate towards the next target of $0.35 and then to the all-time high of $0.73. Attention would then shift to the Fibonacci targets of $0.4355 and $1.179, particularly if overall market sentiment improves.