2025-7-22 16:53 |
Dogecoin (DOGE) appears to have firmly turned a corner, with a powerful technical breakout signalling the potential for a significant rally.
After months of consolidation and gradual price recovery, the meme-based cryptocurrency is gaining serious momentum.
With a bullish cup-and-handle pattern now confirmed, all eyes are on price levels not seen since the historic highs of 2021.
DOGE’s breakout above key levels fuels bullish sentimentOver the past month, Dogecoin has surged impressively, climbing from a low of $0.142 on June 22 to as high as $0.2728 at press time.
This 64% rally, accompanied by a consistent rise in trading volume, has helped DOGE shatter critical resistance levels.
Most notably, the coin broke through the 50-day and 200-day simple moving averages at $0.184 and $0.219 respectively, an important technical signal often associated with trend reversals.
Crypto analyst Ali emphasised this breakout, noting that as long as DOGE maintains support above $0.25, price targets of $0.33 and $0.40 are within reach.
Ali@ali_charts·FollowDogecoin $DOGE is breaking out! As long as the $0.25 support holds, $0.33 and $0.40 become a magnet.
2:50 AM · Jul 21, 20251.1KReplyCopy linkRead 47 repliesIndeed, Dogecoin’s price has not only sustained these gains but also appears poised for further growth, buoyed by strong buying pressure and favourable market conditions.
Dogecoin cup and handle breakout points to more gainsAdding to the bullish case is Dogecoin’s successful breakout from a cup-and-handle formation, a widely respected technical pattern known for forecasting upward continuation.
The “cup” represents a period of accumulation where prices dipped and slowly recovered, while the “handle” reflected a brief consolidation before the surge.
On the daily chart, DOGE broke above the rim of this pattern, which had acted as a resistance zone.
This breakout suggests a strong shift in sentiment, with technical projections now pointing to $0.41 as the next significant target, followed by a potential move to $0.70 if momentum persists.
Supporting these projections, the Money Flow Index (MFI) recently soared to 90.46, indicating heightened buying pressure.
Similarly, the Awesome Oscillator (AO) remains in positive territory, reflecting increasing bullish momentum.
The Supertrend indicator also remains green and below the current price, reinforcing the ongoing uptrend.
Dogecoin price chart | Source: TradingViewInstitutional moves add confidence to the rallyDogecoin’s technical strength is not the only factor driving its recent performance. Institutional interest has also begun to play a growing role in legitimising the asset.
Bit Origin, a Nasdaq-listed nanocap, recently unveiled a plan to establish a $500 million Dogecoin treasury, backed by stock and convertible debt.
The firm has already raised $15 million, earmarked for its initial DOGE acquisition.
This move marks a significant milestone for Dogecoin, making it the first cryptocurrency to serve as a primary treasury asset for a company on a major US exchange.
Dogecoin price outlook: rally or retest?While indicators overwhelmingly point to further upside, the relative strength index (RSI) shows a heavily overbought market, hinting at a possible pullback.
Should a retest occur, Dogecoin (DOGE) could revisit the $0.17 level.
However, so far, momentum continues to build, and the coin has maintained its support above the critical $0.25 mark.
If the current trajectory holds, breaching $0.33 could open the door for an aggressive run towards $0.40.
Beyond that, the $0.70 mark, coinciding with the 1.618 Fibonacci extension, becomes a realistic target, echoing levels last seen during Dogecoin’s euphoric 2021 rally.
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