- A Dogecoin price breakout is likely amid sustained drawdown amid volume boost.
- While a 30% rally is possible, bearish headwinds cannot be shunned.
The price of Dogecoin (DOGE) is caught up in the current market selloff, which has seen it lose some of its gains in the past 24 hours. The coin’s setup is, however, indicative of a potential breakout in the long term. Despite the broader uncertainty, many now seek answers to whether the DOGE price can jump by 30% or more soon.
Dogecoin Technicals Point Toward Rebound
At the time of writing, DOGE price has buckled amid intense selling pressure on different timelines. In the past 24 hours, Marketcap shows its price has dropped by 3.18% to $0.2157. The trading volume is, however, up 95% within the same period.
The price outlook over the past two weeks differs, with the meme coin jumping by more than 25% during this time. Despite the close trading range, volatility has been so strong that it has become uncertain how much or when a breakout will occur.
Analysts have spotted a technical setup that may support a sustainable price revival. As it stands, Dogecoin is trading below both the resistance level at $0.225 and the 100-day Simple Moving Average (SMA). This price setup shows that, given the right triggers, there is enough room for a breakout.
According to Ali Martinez, Dogecoin is forming a declining wedge pattern, which is a bullish reversal trend. Based on our earlier news coverage, the DOGE price is expected to return to $1. Current positioning from analysts suggests this current setup may trigger the breakout.
However, the current technical setup is not a yardstick for discounting Dogecoin prices from more potential trend reversals. According to CryptoQuant contributor Burak Kesmeci, the top memecoin is combating the influx of retail traders into the futures market.
According to our recent analysis, this futures setup typically marks a cycle top. With the DOGE price fluctuating below the critical resistance level of $0.24, this offers more likely distress for the memecoin.
Dogecoin and the Fundamental Push
Important support and resistance levels have emerged amid expectations of a price rebound. The first major resistance is $0.232, and the immediate support level is $0.22.
To fuel the market’s strength, key fundamentals in the Dogecoin market include the push for an Exchange Traded Fund (ETF) in the United States. Several asset managers, including Grayscale and Franklin Templeton, have filed for a DOGE ETF.
As we discussed earlier, the US SEC recently pushed back the decision on these products. While no outright denial or approval has been given, the market remains optimistic about what to expect.
Other products are also likely to fuel the broader Dogecoin price rebound. As featured in our recent coverage, Coinbase has plans to launch the cbDOGE product on the Base network. This will further help drive liquidity to the memecoin, setting it up for more rallies ahead.
A DOGE breakout this month has long been predicted, and the current setup is making it more realistic.
