TL;DR
- Dogecoin closes above $0.25 resistance, signaling a confirmed breakout with rising market volume.
- RSI enters overbought zone, showing strong momentum but suggesting a short-term pullback may follow.
- Whales accumulated over 1 billion DOGE, showing confidence during early breakout strength this week.
DOGE Breaks Above Key Resistance Level
Dogecoin (DOGE) has moved firmly above the $0.25 resistance level, closing beyond it on the daily chart. This confirms a long-standing breakout pattern. The price rise comes with more volume and attention in the market.
The token was trading at $0.27 at press time. Over the last 24 hours, it has climbed by 9%, bringing its seven-day gain to 34%. With momentum building, traders are now watching the $0.25 level to see if it holds as short-term support.
Momentum Holds, But RSI Shows Overbought Conditions
On the technical side, both the price and RSI are forming higher highs. This is the indication of strong movement in the markets, justifying the breakout with no indications of bearish divergence. The chart shared by Trader Tardigrade is consistent with this structure, showing a clear setup for further momentum if conditions remain the same.
However, the RSI is currently overbought. A brief pullback would not be unusual and could provide support for a more sustained move later. Holding the $0.25 level during any short-term dip will be important.
DOGE Price Targets Set Between $0.31 and $0.42
If support holds, the next price targets are set at $0.31 and $0.42. These levels are based on previous chart resistance and recent trade volume clusters. The move above $0.25 has opened the way for these zones to act as magnets for price in the coming sessions.
Another analysis by Ali points to $0.33 and $0.40 as likely areas of interest. These levels remain valid while the price stays above the support floor.
Big Bets on Breakout
In the last two days, large wallets have accumulated over 1 billion DOGE, valued at more than $250 million at current prices. This increase in holdings suggests confidence from major players during the breakout phase.
Leverage activity has also picked up. As CryptoPotato reported, one whale closed a long DOGE trade at the local high with profits exceeding $2 million. The trader then opened another position of more than $21 million that had 10x leverage, indicating high anticipation of further price changes.
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