Dogecoin Breaks Out, Eyes $0.30 Amid Bullish Trend
Key Takeaways
- Dogecoin (DOGE) broke out of a two-month sideways phase in early May
- The price successfully tested the support level at USD 0.212
- Strong buying volume indicates further upside potential
- Technical indicators point to a bullish market structure
- A price target of USD 0.30 is coming within reach
Dogecoin Gains New Upward Momentum
Dogecoin overcame a key technical barrier in early May. After weeks of sideways movement, the price broke through the upper boundary of the trading range, reaching an interim high of USD 0.26. This breakout followed a successful test of the support level at USD 0.212. The price movement suggests a potential trend reversal.
Technical Analysis: Supports, Resistances, and Indicators
The Bollinger Bands showed a breakout above the upper band on May 10. Such movements often indicate short-term overextensions followed by corrections. That’s exactly what happened: the price pulled back and tested the 50% Fibonacci retracement level before rising again.
The current market structure on the daily chart is bullish. The price is trading above the 20-day moving average, which serves as dynamic support. The volume analysis indicator A/D (Accumulation/Distribution) has been trending upward for two months. This means that buying volume clearly outweighs selling volume.
The CMF (Chaikin Money Flow) is above +0.05 – another sign of positive capital inflows into the DOGE market.
On-Chain Data: Activity Increasing, but Short-Term Risks Remain
Despite the positive technical signals, some on-chain metrics point to potential risks. The Mean Coin Age has declined in May. This suggests that many DOGE holders have moved their coins – likely to take profits.
On May 14, the number of daily active addresses also rose sharply. Such activity is often accompanied by increased volatility. The 90-day MVRV (Market Value to Realized Value) is currently in positive territory. This means that many investors who entered the market in the past three months are sitting on profits. This could lead to short-term profit-taking.
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Outlook: Is a Jump to USD 0.30 Coming?
Long-term Fibonacci projections show the next price target at around USD 0.306. This makes a further increase possible, provided there are no major sell-offs by short-term investors.
The key will be whether Dogecoin can sustainably break above the USD 0.264 level. If successful, a rise to USD 0.30 is technically well supported.
Our Assessment
Dogecoin is currently showing clear signs of recovery. The technical structure is stable, buying interest is rising, and capital inflows are positive. However, you should keep an eye on the activity of short-term investors. Profit-taking could cause short-term pullbacks.
If you’re investing in DOGE or planning to enter, watch the resistance zone at USD 0.264 as well as the psychological level of USD 0.30. If buying volume remains high and stable, the chances for further gains are good.
Sources
- TradingView
- Santiment
| Symbol | DOGE |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | 0.234729 |
| 24h % | -2.80 % |
| 7d % | 3.96 % |
| 30d % | 30.44 % |
| 60d % | 26.03 % |
| 1y % | 48.41 % |
| Market Cap | $35,052,979,047.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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