Will Dogecoin reach the $0.50 psychological mark as the ETF news and whale activities fuels breakout rally chances?
As Bitcoin BTC $84 555 24h volatility: 0.6% Market cap: $1.68 T Vol. 24h: $28.08 B marks a bullish recovery over the past 24 hours, meme coins are also enjoying a recovery rally. Among the top-performing meme coins, Dogecoin DOGE $0.16 24h volatility: 0.9% Market cap: $23.34 B Vol. 24h: $820.07 M stands out with a 5.66% growth in the past 24 hours.
Crossing above the $0.35 psychological mark, Dogecoin now prepares for an extended rally. But will this recovery run result in a $0.40 breakout rally?
Technical Analysis Shows Bullish Momentum
In the daily chart, the overnight recovery in Dogecoin completes a Morningstar pattern. Furthermore, this pattern takes support from the 50 EMA line, solidifying its bullish potential.
Currently, Dogecoin trades at a market price of $0.3599, marking an intraday loss of 3.11%. However, the Doge price trend over the past few weeks has maintained a sideways shift between $0.30 and $0.40.
The Morningstar pattern suggests a potential early reversal that could challenge the overhead ceiling. In case of a breakout rally, the trend-based Fibonacci levels point to a price target at the 50% level of $0.4973. On the downside, the crucial support for DOGE remains near $0.20, aligning with the 100 EMA line.
Momentum Indicators Signal Buy Opportunities
Technically, the exponential moving average (EMA) lines maintain a positive alignment despite the short-term volatility. Additionally, the daily RSI line shows a consistently higher low formation and sustains above the halfway mark.
These indicators suggest strong bullish momentum, prompting a buy signal for Dogecoin. Supporting this, Ali Martinez, an independent crypto analyst, highlights Dogecoin’s massive upside potential in the near term.
Analyst Insights and Whale Accumulation
In the 12-hour chart, Ali Martinez identifies a post-retest reversal in Dogecoin, gaining momentum. The ongoing retest presents an upside potential of 42.75%, targeting the $0.50 mark.
#Dogecoin $DOGE is still holding above the breakout zone, showing resilience and potential for further upside! pic.twitter.com/iqYh5py2CC
— Ali (@ali_charts) January 21, 2025
Moreover, whale activity has increased significantly. Over the past 24 hours, whales have acquired 500 million DOGE.
Whales bought another 590 million #Dogecoin $DOGE in the last 24 hours, as shown by data from @santimentfeed! pic.twitter.com/HlT3A79m2S
— Ali (@ali_charts) January 22, 2025
This reflects growing confidence in Dogecoin among large investors, even amidst short-term market volatility.
Dogecoin ETF News Fuels Market Optimism
Fundamentally, the anticipation of a Dogecoin ETF has improved market sentiment. According to Eric Balchunas, an ETF analyst at Bloomberg, Dogecoin ETF filings could enter the market within the next 75 days.
If approved, this development would mark a significant milestone for Dogecoin, aligning it with major assets like XRP and Litecoin in the ETF space.
Conclusion
With technical indicators pointing toward bullish momentum, whale accumulation, and ETF optimism, Dogecoin seems poised for an extended rally. A breakout above $0.40 could trigger a parabolic rise, with a potential target at $0.50 in the near term.
The next few days will be crucial as Dogecoin tests its resistance levels and broader market stability influences its trajectory.
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