Dogecoin price bullish outbreak preludes 37% profit for DOGE

Dogecoin (DOGE) price was on a tear yesterday, breaking three key elements that kept any further upside in DOGE price action muted. DOGE price this morning is seeing quite some substantial bullish inflow at the 55-day Simple Moving Average (SMA). A bullish outbreak would first target $0.29 and next $0.35 as profit levels.

Dogecoin price has made a hole in the bears defense and could hit $0.35

Dogecoin price sees substantial buying activity at the 55-day SMA after the price opened above the monthly pivot level. Bulls are pushing in the price action with higher lows and are slowly but surely breaking down the bearish wall of resistance that lies above. 

DOGE already saw a few attempts on October 6 and 18. Doge price made its way above $0.26, the red descending trend line and the 200-day SMA – three significant levels where a lot of bears entered or have put their stops behind. The fact that these levels have been broken and quite a few stops have been taken out means bears will be backing off little by little now, paving the way for further bullish action.

DOGE/USD daily chart

DOGE will see bulls defending the monthly pivot and using it as a launching point to take out the three above-mentioned resistance levels. Key will be to see Dogecoin price consolidate above $0.29, which should act as support for that final profit level at $0.35.

If bulls fall into a bull trap, expect bears to push price action back below the pivot at $0.24. A break lower would see Dogecoin price action dip further toward the green ascending trend line that is the backbone of the uptrend. Should some heavy headwinds start to heat up, expect a break of the green ascending trend line and a test of $0.19.