Dogecoin Shows Bullish Pattern, Targeting $0.80 Amid Strong Support

In Brief

• Dogecoin forms a bullish pattern with significant support at $0.08.
• Accumulation phases show potential for a price surge of up to 480%.
• RSI at 35.48 indicates more upside momentum for DOGE.

The recent cost basis distribution chart for Dogecoin (DOGE) highlights crucial support at $0.08 and resistance at $0.20. A large concentration of supply around $0.08 suggests that if the price falls to this level, buying interest may increase, potentially providing support. 

In contrast, the $0.20 level represents significant selling pressure, as 12.22 billion DOGE were acquired between $0.2013 and $0.2047. This resistance point may make it challenging for the price to break above, limiting upward movement. 

DOGE Cost Basis Distribution Heatmap | Source: glassnode

Additionally, 27.37 billion DOGE were acquired between $0.0799 and $0.0814, reinforcing the importance of the $0.08 level as a key support zone. These levels mark critical turning points for DOGE’s price action, with potential reversals occurring near them.

Bullish Momentum and Potential Price Surge

The chart also indicates a strong bullish pattern forming for Dogecoin, supported by a cycle of accumulation followed by substantial price increases. The first accumulation phase saw a 190% surge, while the second phase resulted in a 480% price increase. 

Dogecoin Mini Cycles | Source: X

Currently, DOGE is in Accumulation 3, and if this cycle continues, the cryptocurrency could experience another significant upward movement. The Relative Strength Index (RSI) is at 35.48, showing that there is still potential for upside momentum before entering overbought conditions. 

Based on these patterns, DOGE has a target price of $0.80, signalling potential for new all-time highs. Moreover, the Price Momentum Oscillator (PMO) shows a bullish divergence, suggesting that the price could soon surge as momentum builds. 

Dogecoin Monthly Chart | Source: X

The monthly chart reinforces this positive outlook, pointing to long-term growth potential, with price targets ranging from $310.00 to $550. If past momentum patterns hold, DOGE could enter a major bull run, making this an ideal setup for investors looking for strong future gains.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Source: https://coincu.com/dogecoin/dogecoin-shows-bullish-pattern-targeting/