Dogecoin price grinds higher, DOGE on the verge of bullish breakout
|- Dogecoin price is still in an uptrend, as tailwinds in cryptocurrencies emerge.
- DOGE bulls are reclaiming the monthly pivot at $0.27.
- The RSI points to a pickup of buyers with an imminent breakout towards $0.35.
Dogecoin (DOGE) price has been in a slow grind higher for several days now, but buy-side volume is picking up speed as tailwinds emerge in cryptocurrencies after Bitcoin hit new all-time highs. That spillover effect propels into a possible breakout towards $0.35, which would be the third and make-or-break retest of this pivotal historical level. When bulls are finally able to reclaim this level and consolidate above, expect a second wave in uptrend towards $0.45.
Dogecoin price sees bulls preparing for an attack towards $0.35
Dogecoin price is seeing some pickup in buy-side volume, with buyers re-emerging after staying a period on the sidelines. This lack of fresh buyers and volume developed as the Relative Strength Index (RSI) was trading too close to the overbought area for a few days, which indicated limited upside potential for bulls in DOGE price action. With the RSI back towards 50, buyers were eager to buy into DOGE price again, and bulls reclaimed the monthly pivot at $0.27.
DOGE price sees, for now, the bulls facing some resistance from the 200-day Simple Moving Average (SMA) at $0.29. With the general crypto tailwinds and spillover effect from Bitcoin making new highs, bulls should be able to push beyond the 200-day SMA. This would open the road towards $0.35 for a third retest and break above this level that has kept DOGE price capped to the upside since June.
DOGE/USD daily chart
If the pivot does not hold, expect bulls to pick up Dogecoin price at $0.26 with the 55-day SMA at $0.24 as ultimate support. As that discount would attract more buyers to the trade, expect that to be enough to break and close above $0.35. Bulls must be aware of some short-term profit-taking as the monthly R1 and R2 resistance levels are in the way of the trajectory towards $0.45, respectively at $0.35 and $0.44.
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