Crypto market analyst Kevin points out that Dogecoin (DOGE-USD) is testing a pivotal point in its price chart. After grappling with a month-long downtrend, DOGE is now making a critical move to break free from its falling channel, signaling potential for a rally.
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Resilience Fuels Hope for Bullish Momentum
On a technical front, Kevin has observed Dogecoin “back testing” the upper boundary of its recent trading pattern. “It’s crucial for DOGE to hold this and bounce,” he emphasized, suggesting a reevaluation if it fails to maintain this momentum. The cryptocurrency showed tenacity, bouncing back from a brief dip and closing well above the trend line, powered by its alignment with significant moving averages.
Dogecoin’s Prospects Are Linked to Bitcoin
Kevin cautions that Dogecoin’s prospects are tightly linked to Bitcoin’s market movements and external market shocks, such as the recent introduction of a memecoin by associates of the incoming U.S. President Donald Trump. This has thrown a wrench into the gears of the cryptocurrency market, potentially impacting Dogecoin’s trajectory despite its technical promise.
As Dogecoin tests the waters above its crucial support level, its ability to sustain and build upon the current price point near $0.40 will be key to confirming the bullish outlook.
At the time of writing, Dogecoin is sitting at $0.3687.