Will This Push Dogecoin Price Past $0.22?

Dogecoin price has slipped amid a broader market downturn, but technical analysts point to a golden cross on the weekly chart.

This pattern, paired with bullish derivatives data and Fibonacci-based projections, suggests that DOGE price could soon attempt a breakout above $0.22 resistance.

If successful, targets between $0.4355 and $1.179 are possible to emerge within the next bullish cycle.

Dogecoin Price Forms Weekly Golden Cross

The latest technical setup has placed Dogecoin price in a potentially explosive position. According to analyst Kamran Asghar, DOGE price is nearing a golden cross on the weekly chart, with the 10-week simple moving average (SMA) about to cross above the 20-week SMA.

In the past, this cross has resulted in huge Dogecoin rallies of 232% and 313%.

Currently trading at $0.16, Dogecoin price is consolidating just below the $0.22 level. Analysts agreed that this zone represents a key barrier.

A breakout beyond it would validate bullish continuation and allow higher targets to be reached. Waleed Ahmed highlighted $0.22 on the chart as the last hurdle before all-time highs.

The Golden cross patterns are not common at the high timeframes and are usually a sign of good long-term potential. A series of higher lows in the weekly chart has helped to support the setup, pointing to the fact that momentum is slowly beginning to favor the bulls.

Fibonacci Price Targets at $0.4355 and $1.179

Analyst Surf posted a monthly Dogecoin chart highlighting key Fibonacci extension levels. In his analysis, he revealed that the 1.618 extension aligns with a target of $0.4355, whereas the 2.618 level is expected to rally to $1.179.

These levels are dependent upon the impulse wave and retracement structure of the past cycle.

However, Dogecoin price must first clear the $0.22 resistance before these targets can be considered realistic. The monthly candles, however, exhibit a strengthening market structure in the form of consistently higher lows.

If the top meme coin manages to surpass the $0.22 level and back the breakout with volume, the Fibonacci path would be valid as a fundamental reference of long-term profits.

Consequently, historical price action supports this. The last time Dogecoin price broke its local resistance in 2021, it surged by over 800% within weeks.

Although such gains cannot be guaranteed, there are indications that the same patterns in terms of structures are happening again.

Derivatives Metrics Support Bullish Continuation

Derivatives and on-chain data confirm the rise in interest in long positions. According to Coinglass data, Dogecoin open interest has risen by 1.75% to $1.82 billion.

The implication is that capital is being reversed into DOGE contracts on exchanges such as Binance and OKX.

Long/short ratios have become notably skewed toward longs. On Binance, the ratio stands at 2.89 for DOGE/USDT. On OKX, it is even higher at 3.65.

These numbers demonstrate that most traders are attempting to place in an upward movement and not downside risk.

Moreover, the volume of options increased by 578%, signifying an escalation of speculative demands. Even though the options open interest was reduced by 75%, it might indicate that traders are adopting directional trading strategies involving fewer hedges.

Collectively, these figures provide a robust argument that sentiment correlates with a bullish technical outlook.

Funding rates are also fairly neutral, meaning that leverage levels are not quite overstretched. This will improve the conditions of a long-term rally because the probability of forced liquidations within a short period is minimal.

Dogecoin Price Must Break $0.22 to Confirm Bullish Momentum

For the current bullish setup to play out, Dogecoin price must hold above the $0.16 support. The level has been serving as a demand zone for weeks. Any breakdown below it would bust numerous bullish designs, such as golden cross and wedge formations.

Nevertheless, in case DOGE manages to move above the resistance of $0.22 on the weekly or monthly time-frame, analysts predict the price to accelerate to the next target of $0.35 and then to the all-time high of $0.73.

Then the attention would turn to the Fibonacci sets of $0.4355 and $1.179, especially should the overall market sentiment increase.

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