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- Dogecoin rebounds from $0.166 and nears critical resistance at $0.175.
- Whale accumulation and bullish indicators support further upside.
- Breakout could push DOGE toward $0.2043 and possibly $0.2596.
Dogecoin has started to recover after a period of sideways movement. The price rebounded sharply from $0.166 and now trades close to $0.174. The meme coin has gained almost 8% in the past week. It is now outperforming both Bitcoin and Ethereum.
The number of trades has also skyrocketed, showing renewed interest in the asset. The value of DOGE surged suddenly in the first week of July within just hours. It increased from $0.166 to $0.173 in the blink of an eye. The volume exceeded $1.14 billion during the surge. That was nearly six times the average trade volume.
This validated solid buying interest just below the resistance. Now the market is observing the $0.175 area. It is a very important short-term level. If DOGE moves beyond this resistance, the next objective is $0.2043, the month high.
Dogecoin Technicals Turn Bullish
The technical setup for Dogecoin has tipped in favor of the bulls. The Relative Strength Index has crossed over 50, indicating positive action. The MACD is also issuing calls for bullish continuation. The early July crossover cements the positive trend.
DOGE also indicates it has at least one larger bullish pattern forming. The double bottom, in evidence since the month of April, backs the upcoming break to $0.2596. The pattern developed near the $0.1467 area. This spot has twice proven to be the bottom in creating the foundation for the longer-term breakaway.
Traders are now watching the region around $0.176 to $0.180. If the price moves beyond this region, it would be a potential launchpad. That would propel the price in the direction of the higher Fibonacci targets along with the neckline of the bullish setup.
Whales Accumulate Dogecoin Again
The whale wallets have started to accumulate again. The accounts containing 1-100 million DOGE in balance added to the sum in proportion in the last 30 days. Apart from them, the smaller wallets reduced the amount they were carrying. The trend more often than not shows larger investors expect some sort of action in the price.
Besides technical momentum, on-chain metrics reflect shifting market sentiment. Derivative interest has also picked up speed, hinting at added institutional interest. Macro trends in the backdrop support growth. Real-world adoption of Dogecoin is anticipated.
Elon’s political party and Tesla’s consistent support also come into play. Payment processors even began to take DOGE for some payments. DOGE would also cross $0.175 with good volume, where it would quickly go to $0.2043. It could even reach $0.2596 in the second half of the year in a fresh surge.
Related Reading: Bitcoin Reaches $108,850: Will It Continue to Surge?
