Dogecoin (DOGE), the popular meme-inspired cryptocurrency, is currently demonstrating signs that suggest it may be on the verge of a significant bullish breakout.
According to a recent analysis From prominent crypto analyst Ali, the meme-inspired cryptocurrency appears to be approaching a crucial resistance level, with market behaviors suggesting a potential upward move.
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Eyes on breaking $0.2 resistance level
Ali, a well-known market analyst, highlighted that Dogecoin is testing the possibility of reaching its highest price level in over a month at $0.2. His analysis is based on the recent DOGE study escape a descending triangle patternwhich typically suggests a change in market dynamics favoring buyers.
Following a similar pattern to the previous cycle where DOGE experienced a pullback after breaking out of a descending pattern before rising, the asset recently completed a significant 47% pullback.
This move led Ali to highlight the market’s tendency to repeat past patterns, although not perfectly. With the breakout of the descending pattern and subsequent pullback now complete, DOGE is positioning itself for another push towards the $0.2 resistance level.
History does not repeat itself, but it often rhymes!! https://t.co/qr9BG5QnjH
-Ali (@ali_charts) May 21, 2024
This level has proven challenging, with selling pressure often intensifying around this range. However, broader market sentiment remains optimisticwhich could support Dogecoin’s momentum towards this key price.
Notably, to reach $0.2, DOGE would need to further increase by almost 20% from its current position. Currently, the memecoin is trading at $0.168, reflecting a 10% increase in the last 24 hours and continuing a week-long uptrend that has seen a nearly 15% increase.
Growing interest in Dogecoin and strong positive signal
The positive movement in DOGE price performance is further underscored by an increase in DOGE open interest, which increased by 23% in the last day to reach $1 billion, according to data from Coinglass.
![Dogecoin Bulls On The Rise: Analyst Highlights Path To $0.2 2 Open interest on DOGE (USD) futures.](https://thegurumedia.com/wp-content/uploads/2024/05/Screenshot-2024-05-21-at-17.53.35.png)
Additionally, open interest has increased by 200%, now at nearly $4 billion. An increase in open interest indicates that new market participants are entering or existing positions are being expanded. This could be a sign of strengthening market activity and a factor supporting continued price increases.
Echoing the sentiment of Ali, another analyst at Crypto Daily Trade Signals identified a symmetrical triangle pattern in DOGE price movementsreinforcing the potential for continuity of the upward dynamics.
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According to this analysis, Dogecoin is showing signs of bullish behavior, with immediate resistance near $0.15950. However, as DOGE has now surpassed this, the analyst noted other resistance levels at $0.16980 and $0.18440.
Featured image created with DALL·E, TradingView chart