Dogecoin (DOGE) has exhibited positive momentum over the past 24 hours. After bulls vehemently defended the crucial $0.1 support level, the price has increased, mirroring similar rebounds in other major altcoins like Ethereum, Solana, and XRP.
Technical Analysis Hints at Bullish Breakout
Technical indicators are flashing some bullish signals for DOGE. The recent price increase allowed the token to reclaim ground above the critical 20-day Exponential Moving Average (EMA) at $0.1156, suggesting a shift in momentum from the bears to the bulls.
Furthermore, the Moving Average Convergence Divergence (MACD) indicator hints at a potential buy signal. The blue MACD line recently crossed above the red signal line, which was historically a bullish indicator for DOGE. However, for confirmation, traders will look for the MACD indicator to climb above the neutral zone and be accompanied by green histograms in the coming days.
Falling Wedge Pattern Suggests Breakout Potential
Seasoned traders are eyeing a bullish technical pattern – the falling wedge. This pattern often forms during a downtrend and features price action forming two converging trend lines (lower highs, lower lows). Traders typically see a breakout from this wedge, accompanied by increasing trading volume, as a bullish signal.
If they confirm a breakout from the falling wedge, traders could anticipate a significant price increase for DOGE. Some analysts predict a surge of up to 71%, potentially pushing the price above $0.2. This breakout could catalyse a further rally towards $0.3 and even $1 in the long run.
Related article: NOT 24-hours Price Analysis: Notcoin Rides Market Recovery Wave, Gains 5.85% in the Last 24-hours
Speculation on Spot DOGE ETF Fuels Optimism
The speculation surrounding a potential spot Dogecoin ETF is adding fuel to the bullish fire. The recent approval of spot Bitcoin ETFs has legitimized Bitcoin as a viable investment option and opened the door for institutional investors to enter the cryptocurrency market through traditional stock exchanges. This development significantly boosted Bitcoin’s price in Q1 of 2024.
The anticipation is high, with the possibility of similar ETFs for altcoins like Ethereum already being discussed and potentially including Dogecoin. A DOGE ETF could significantly increase demand for the meme coin, mirroring the price surge witnessed by Bitcoin after the launch of its ETF.
Overall Bullish Sentiment for the Second Half
The broader cryptocurrency market sentiment also appears to be turning bullish. With Bitcoin comfortably trading above $60,000, there’s a growing belief that a bull run could erupt in the second half of 2024. This positive market environment would further support a potential price increase for DOGE.
