Dogecoin experiences a breakout but fails to sustain above $0.445. Can Dogecoin push past $0.50 as Bitcoin sustains above $100K?
The altcoin rally has gained momentum significantly, with Bitcoin price crossing the $100,000 barrier. Among the top-performing players, meme coins like Dogecoin DOGE $0.44 24h volatility: 1.1% Market cap: $64.15 B Vol. 24h: $14.66 B and Shiba Inu SHIB $0.000031 24h volatility: 1.6% Market cap: $18.18 B Vol. 24h: $3.25 B are riding smoothly amid the broader market momentum surge.
The total market cap of meme coins has reached $126.58 billion, with trading volumes crossing $33.50 billion over the past 24 hours. Furthermore, the top-performing meme coins over the past 24 hours include Dogecoin, with a 6.64% rise, PEPE PEPE $0.000022 24h volatility: 1.5% Market cap: $9.09 B Vol. 24h: $5.28 B , with a 5.53% surge, and Shiba Inu, with a jump of 5.28%.
Photo: CoinMarketCap
The impressive rally comes with Dogecoin, which has a market cap of $64.41 billion. With the huge market cap, it dominates more than half of the meme coin segment.
Furthermore, over the past 30 days, Dogecoin has increased by 163%, second, followed by PEPE’s 158% rise and Brett’s BRETT $0.20 24h volatility: 2.2% Market cap: $2.02 B Vol. 24h: $143.97 M 152% jump.
The Dogecoin price trend in the 4-hour chart remained constricted within two converging trend lines. This formed a symmetrical triangle pattern, keeping momentum trapped.
Photo: TradingView
However, with the recent bounce-back from the local support trend line, the Dogecoin price marked a triangle breakout. With four consecutive bullish candles, the price jumped from $0.40 to a peak to a 24-hour high of $0.4655.
However, the triangle breakout rally failed to sustain dominance above $0.445, leading to a quick reversal and a long wick formation. Currently, Dogecoin is trading at $0.43765, retesting the broken resistance trendline.
Furthermore, the higher price rejection comes from the R1 pivot level at $0.47201. This highlights the overhead supply as the Dogecoin price has reversed from these levels nearly three times in the past two weeks.
If the broader market recovers, the triangle breakout rally in Dogecoin could break above the R1 level for an extended rally. However, the meme coin will have to find a four-hour closing above the $0.445 resistance zone.
In such a case, the price targets for Dogecoin are at the R2 and R3 pivot levels at $0.50 and $0.55. The crucial support for Dogecoin remains at the center pivot level at $0.41857 and the local support trendline.
With the short-term price jump in Dogecoin, open interest increased by 12.10%, reaching $3.91 billion. Trading volumes stood at $16.38 billion, marking a 48.38% surge.
With rising bullish sentiments, the liquidations over the past 24 hours speak a different story. As per CoinGlass data, Dogecoin lost $28.06 million in liquidations over the past 24 hours.
Photo: CoinGlass
This accounts for the long-side players losing $16.51 million and the short-side sellers losing $11.55 million. Hence, the liquidations signal a stronger bearish side. This makes sense with the higher price rejection seen in Dogecoin in the last two 4-hour candles.
The long-to-short ratio of top traders is 5.04, while the long-to-short ratio of top traders is 5.42. Furthermore, Dogecoin’s open interest-weighted funding rate has increased from 0.0110% to 0.0537% in the last 30 days. This reflects a surge in the cost of holding long positions.
Hence, the markets are experiencing higher bullish sentiments among Dogecoin traders, leading to increased leverage.
Amid the recovery run, Dogecoin’s rally shows a breakout run in the 4-hour timeframe, failing to sustain momentum. Further, the liquidation and increased leverage hint at short-term pullback.
However, with Bitcoin crossing $100K, the growing risk appetite will fuel the meme coin rally. As the biggest meme coin gaining momentum, the chances of Dogecoin crossing $0.50 are astronomical over the mid and long-term.
For price action traders, a closing price above the $0.445 supply zone on the 4-hour chart can be a buying signal.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
