Dogecoin price is showing positive signs for momentum as it manages to hold above the crucial technical support level, thus increasing the chances of another breakout attempt above the Ichimoku Cloud in the coming week.
At the time of writing, DOGE is trading at $0.08472, down 2.06% over the last 24 hours. DOGE has recorded roughly $951.65 million in daily trading volume, while its market capitalization stands at about $13.20 billion.
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Dogecoin Price Eyes Second Ichimoku Breakout
The latest price performance has received the attention of crypto analyst Trader Tardigrade. In the analysis, he pointed out that DOGE made its first attempt to climb above the Ichimoku Cloud formation on August 29, but this effort has been rebuffed. This does not mean, however, that the entire recovery process has come to an end.
Trader Tardigrade identified the Kijun-sen line as being significant for the price of DOGE in the upcoming sessions. This particular indicator is performing as dynamic support at this point in time, which means that the bulls are protecting the price zone.
If DOGE stays above the Kijun-sen level, the present breakout setup will remain intact. If the price successfully rallies above the Kumo and closes above the cloud for the day, this will be the confirmation of the trend strength.
It is anticipated that DOGE will try to make a second attempt at breaking above the Kumo next week.
There are several areas that could play a part in deciding whether or not the break-through would be successful. The Kijun-sen will serve as the first level of support, and the top of the Kumo will serve as the next level of resistance.
This means that the next few trading sessions could be critical for Dogecoin. Instead of only concentrating on one failure, investors may wish to see if DOGE is able to maintain its recent support level and gain sufficient momentum to break out.
Dogecoin Technical Setup Points Toward $0.097
Further technical signals for the coin also seem to be bullish.
DOGE is now trading above the middle line of the Bollinger Bands with price at $0.07928. The upper line is situated at $0.09763, while the lower line is found at $0.06093.
Trading above the middle line preserves the short-term bias as bullish, with the upper Bollinger Band at $0.09763 serving as a possible upside target. In case of its reach, DOGE will be approaching the $0.10 level.
Additionally, the momentum indicators also back up the reversal pattern. Currently, the MACD line is at 0.00433, which is above the signal line at 0.00379. Moreover, the histogram shows a level of approximately 0.00054. This means that momentum is still in an upward trend despite the recent Dogecoin price action.
Nevertheless, technical indicators cannot confirm the breakout of DOGE since it has to move through the Ichimoku Cloud resistance first.
What Happens Next for Dogecoin Price
The emphasis now will be placed on the possibility of DOGE staying above its dynamic support and generating enough bullish strength to try another breakout towards Kumo.
Daily closing prices above the cloud will be considered a technical signal, while a breakdown below the Kijun-sen will alter the outlook in the short term.
At the moment, Dogecoin price continues to show positive setups with its trading above the middle Bollinger Band and positive MACD values.
The coming key test would be DOGE’s ability for DOGE to reverse its initial failed breakout and make another one. In this case, the $0.09763 might become the key technical target, while $0.10 would become the psychological one.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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