Dogecoin (CRYPTO: DOGE) price has come into the crosshairs of the market once again as Bitcoin (NYSE:BTC) continues to hold above $93,000.

As the meme coin segment experiences a sharp 8.60% increase in total market capitalisation over the last 24 hours, reaching $56.47 billion, Dogecoin has also joined the rally.

The value of Dogecoin has risen by 4.30%, lifting its market cap to $27.03 billion.

With DOGE now trading at around $0.18, traders are keeping an eye on a decisive move past the psychological $0.20 barrier.

As the bullish momentum builds, the question arises: is Dogecoin setting the stage for a sustained breakout or even a potential doubling in value?

Dogecoin price breaks wedge pattern as bulls regain control

On the daily chart, Dogecoin’s price shows a clean bullish breakout from a falling wedge formation.

This key technical move occurred with a strong 12% surge on 22 April, which was also marked by a bullish engulfing candle.

The rally has helped DOGE move above the 50-day exponential moving average (EMA) and the 23.60% Fibonacci retracement level at $0.1820.

As the bullish candles continue to form, the breakout signals the beginning of a trend reversal.

At present, Dogecoin is struggling to maintain its position above the 23.60% Fibonacci mark.

Meanwhile, momentum indicators such as the moving average convergence divergence (MACD) are showing positive developments.

The MACD and signal lines are approaching entry into positive territory, and new positive histograms are forming.

With price action clearing the 50-day EMA, the next dynamic resistance is visible near the $0.20 psychological level and the 100-day EMA.

If Dogecoin’s momentum continues, Fibonacci projections suggest the next immediate target is at $0.2131, which coincides with the 38.20% Fibonacci retracement level.

Derivatives data shows rising bullish sentiment for Dogecoin

As Dogecoin’s price edges higher, bullish sentiment across the derivatives market is heating up.

According to data from Coinglass, long positions in Dogecoin derivatives have increased sharply over the last few hours.

The long-to-short ratio now stands at 1.7518, with about 63.66% of traders holding long positions.

This steep rise indicates greater optimism for an extended rally and adds strength to the ongoing recovery story.

The shift in derivatives positioning suggests that market participants are preparing for a continuation of the bullish breakout, especially if Dogecoin manages to close above the $0.20 mark.

Analyst identifies potential 600% rally if trendline holds

Adding to the bullish outlook, popular crypto analyst Trader Tardigrade has highlighted a striking Dogecoin price prediction.

According to the analyst’s recent technical chart analysis, a long-term support trendline has historically been linked to substantial rallies in Dogecoin’s price, leading to 200% and 400% surges.

Continuing this pattern, the analyst predicts the possibility of a 600% surge if the trendline holds, potentially pushing Dogecoin’s price to around $0.93.

While this scenario presents a highly optimistic view, the historical performance of the trendline does provide some basis for the bullish projection.

However, broader market conditions, Bitcoin’s stability, and retail interest will likely play crucial roles in determining whether Dogecoin can reach such ambitious price targets in the coming months.