Dogecoin (DOGE) has reclaimed the critical $0.25 level, and a wave of optimism has swept across the market.
Crypto analyst Ali Martinez took to X earlier today to forecast a possible rally to $0.36 and stated that the area above $0.25 offers minimal resistance.
As DOGE has remained firm above this level of late, the journey to $0.36 is technically simpler, opening up the opportunity for speculators to experience a strong upside swing.
The sentiment aligns with the wider market optimism enveloping meme coins, especially with Dogecoin continuing to draw retail traders as well as deeper-pocketed investors.
Technical Indicators Flash Mixed Signals Amid Rally
As Dogecoin’s price structure is showing short-term strength, its technical position presents mixed signals.
The Relative Strength Index (RSI) has just reached an extremely overbought reading of 85 at DOGE’s move to a five-month high of $0.2873.
But the RSI has begun to fall towards the midline, showing potential erosion of bullish strength. If the RSI falls below the 50 level, it would mean a turn towards bearish domination.
The Moving Average Convergence Divergence (MACD) is also headed for a bearish crossover that would signal a sell.
If the blue MACD line falls below the red signal line, investors may start reducing exposure to DOGE anticipating a pullback.
Dogecoin Has Solid Support Levels That Can Absorb Potential Corrected
While there is a strong possibility of short-term correction, Dogecoin has solid support levels that can absorb losses.
The price still remains above a down trendline that just got broken, now acting as support.
If DOGE drops below this level, the 200-day, 100-day, and 50-day Exponential Moving Averages (EMAs), all of which are closely packed in the $0.1996 and $0.2064 range, would probably serve as good support.
These EMAs could serve as crucial support webs to prevent the price from going even lower towards June’s bottom of $0.1429.
Thus, a brief-term fall is possible, but Dogecoin is technically positioned to avoid harsh downside if these supports hold.
Also Read: Crypto Analyst Predicts Chainlink Price Drop To $7.50 After Breaking A Rising Trendline
Trading Volume Spikes, but Spot Volume Bubble Map Still Indicates Neutrality
Dogecoin continues to attract unruly trading volumes with a 24-hour volume standing at $7.1 billion to date.
The token is currently trading at $0.238, with a 4.85% 24-hour gain, but still down 5.40% in the past seven days.
While the uptick is clear, on-chain metrics from CryptoQuant indicate that the Spot Volume Bubble Map remains in neutral.
The recent rise is a sign that speculative interest has returned but overall market conviction has not yet got to complete bullish consensus.
Investors may be cautious and wait for consistent volume and directional bias prior to fully committing to Martinez’s target of $0.36.
With a circulating supply of 150 billion DOGE and a market capitalization of approximately $35.76 billion, Dogecoin remains one of the top cryptocurrencies in the marketplace.
Recent recapture of the $0.25 level has reignited the hopes of long-term investors as well as technical analysts.
On-Chain Data Adds Context to Long-Term Outlook
On-chain indexes such as the UTXO Realized Price Distribution (URPD) by Glassnode add some color to DOGE’s price action.
The UTRD shows the major price clusters at which investors held DOGE, with significant volumes accumulated around $0.24 to $0.27.
Thus, it seems holders are in profit or break-even, thereby lessening the sell pressure for further upside.
That being said, some bulk of DOGE was bought between $0.30 and $0.36-the area targeted by Martinez-which might serve as increased resistance as the price nears those levels.
However, the direction from this point will depend on whether DOGE can maintain present momentum with a push-off of bearish technical signals.
If the $DOGE price can stay above key supports and build up sustained bullish volume, the predicted rally to $0.36 may then be realized.