Recent price movement points to a notable upside momentum for Dogecoin in the upcoming days as the general crypto market gains traction. However, certain indicators show that the dog-themed meme coin’s next upward move might be tied to Bitcoin’s price dynamics.
Will Bitcoin’s Price Action Unlock Dogecoin’s Next Surge?
As Bitcoin continues to be a dominant force in the crypto market, its price trajectory might act as a catalyst for broader market trends. Meanwhile, crypto expert and trader Kevin has pointed out that Dogecoin’s potential for a bullish breakout may heavily depend on Bitcoin’s next key price movement.
Given that DOGE is currently stabilizing close to crucial levels, a strong move by Bitcoin could bolster the meme coin’s upward momentum, leading to a surge. With the market experiencing a notable rise in inflow, DOGE may attract the necessary momentum for a price surge, targeting key resistance levels such as the $0.40 mark.
Delving into Dogecoin’s recent price action, Kevin highlighted that Dogecoin and the macro 0.5 Fibonacci extension are engaged in a fierce battle. While the Fibonacci extension marks a significant resistance, the expert noted that it is the key to revisiting the macro golden pocket.
Meanwhile, Kevin contends DOGE’s success in this situation will be entirely dependent on Bitcoin’s capacity to emerge from its macro golden pocket. The development may kickstart the much-anticipated rally for the meme coin to a new all-time high.
It is worth noting that Dogecoin’s macro golden pocket is positioned at the $0.49 level. Kevin claims that the level marks a critical resistance point that must be cleared before DOGE can continue its journey toward a new all-time high.
The $0.49 point is the first crucial resistance zone out of the few levels pointed out by Kevin that DOGE must break for a bullish breakout. After conquering the $0.49 macro golden pocket, the expert highlighted that the next resistance sits at $0.53, a level that represents a critical Fibonacci extension point of 0.703.
Following a breakout from the $0,53 mark, Kevin has underlined another critical resistance at $0.59, which he labels the “final boss,” marked by another key Fibonacci extension level at 0.786. Should the Dogecoin break the $0.59 level, Kevin is confident the next rally could push the meme coin to a new all-time high.
Key Chart Pattern Emerging For DOGE
After a strong upward move at the start of the week, DOGE’s price has declined immensely, especially in the last 24 hours. While this drop threatens Dogecoin’s uptrend, it might be short-lived as a bullish formation is developing on the 1D chart.
Looking at the 1d chart, Trader Tardigrade, a crypto expert, has cited an emerging Cup with Handle formation, a technical pattern that often precedes an upswing. Once the pattern fully develops and DOGE breaks out on the upside, it might trigger a bullish wave for the meme coin to higher levels.
Featured image from Unsplash, chart from Tradingview.com
