Dogecoin price hits $0.20, retesting key resistance; analysts eye potential breakout as momentum builds for a possible explosive rally.
The price of Dogecoin (DOGE) increased for the third day in a row, retesting the resistance level at $0.20 for the first time since May 30.
After Elon Musk expressed some regrets regarding Trump in several of his X posts, its rise continued marginally.
We should investigate whether the momentum will initiate an explosive rally, potentially reaching $0.2600, its most significant point in May.
Today, the price of DOGE is $0.20, and CoinMarketCap data indicates a 30% increase in 24-hour volume to $1.65 billion.
The company’s market capitalization reached $30 billion as a result of the rally.
Dogecoin Price Needs To Pick Up Speed For Rally To Continue
The Dogecoin price chart for the past 12 hours indicates that the coin reached a low point of $0.1660 on June 5 and began a gradual recovery, ultimately ascending to $0.20 today.
The lowest point was significant because it was concurrent with the lowest oscillation on May 6.
DOGE is receiving conflicting signals from technical indicators.
On the one hand, the momentum oscillator and the Relative Strength Index (RSI) indicate an upward trend, which means a strengthening phenomenon.
The RSI is primarily employed to identify overbought and oversold levels and assess the speed and magnitude of an asset’s price changes.
A rising RSI, similar to other oscillators, indicates a favorable momentum.
Other indicators indicate that the current DOGE price recovery may not be sufficiently robust.
For instance, the asset has encountered resistance at the 50-period Exponential Moving Average (EMA).
To sustain the explosive rally, it is necessary to overcome this resistance.
The Average Directional Index (ADX) indicator has been downward, which is another red flag.
It decreased from 42 in May of this year to 21.45. A declining ADX line indicates a weak trend, frequently indicating a reversal.
Consequently, the coin will experience an explosive rally to $0.2594 if it acquires momentum and surpasses the 50-period moving average.
By achieving a distinct breakout above the initial target at $0.2594, the next significant resistance level at $0.4324 will be visible.
This figure represents the highest level since January and a 118% increase from the current level.
Conversely, a decline below the support level of $0.1660 would render the bullish perspective invalid and indicate a decline to $0.1280, the lowest point reached in April.
Potential Catalysts For DOGE Price
If at least four catalysts exist, an explosive Dogecoin price rally would occur.
Initially, it will happen if the Bitcoin price surpasses its all-time peak and breaks out.
A move of this nature would incite a far-reaching crypto market rally comparable to the one in May when it reached a record high.
Secondly, a reconciliation between Donald Trump and Elon Musk would also be psychologically beneficial.
Musk has already expressed remorse for specific statements, which has sparked the possibility of some form of reconciliation.
Third, the ongoing accumulation of DOGE whales may result in additional gains.
The approval of spot DOG ETFs filed by companies such as Bitwise, 21Shares, Grayscale, and Rex Shares would be favorable, resulting in increased demand.
Summary
The price of Dogecoin has increased in the past few days.
Although this recovery is favorable, the ADX and moving averages indicate that an explosive rally is still elusive.
For this to occur, the ADX must reverse course, and fundamentals such as a crypto market rally and DOGE ETF approvals would be required.