Dogecoin (DOGE) is on the way to its positive price trajectory and is experiencing a surge in its price with the overall market. DOGE is currently trading inside a horizontal channel pattern, which often leads to a bullish reversal. A successful breakout with the growing investor confidence in the crypto space may lead the DOGE toward the maximum profit zone around $0.25.
At the time of writing, DOGE is trading at $0.2216 with a 24-hour trading volume of $1.96 billion and a market capitalization of $33.4 billion. The DOGE price over the last 24 hours is up by 3.99%, and over the last week it is also up by 2.25% with a high potential for the next major rally.
Dogecoin eyes $0.25 resistance in horizontal channel
A prominent crypto analyst highlighted that Dogecoin ($DOGE) continues within a clearly defined horizontal channel on the 4-hour chart, with support anchored firmly at $0.20 and resistance at $0.25. This level has been approached time and again, with buyers and sellers not budging, further underpinning the channel as central for the near-term outlook.
DOGE is now stabilizing around the midpoint of the range after bouncing from the lower limit. As long as the price maintains itself within the said central zone, analysts project another rally towards the top resistance at $0.25. This rally would ideally offer short-term opportunities for bullish buyers with targets at the channel top.
On the other hand, if Dogecoin fails to maintain support higher than the mid-range level, there is a higher risk of yet another correction down below the $0.20 support level. That level has been part of the key defense line of the bulls, yet prolonged tests may weaken its efficacy and raise the risk of breakdown.
Until there is a definitive breakout either above $0.25 or below $0.20, Dogecoin will continue to remain range-bound. In the meantime, the setup favors scalpers and short-term traders who are able to capitalize on the repetitive swings while longer-term investors wait for confirmation of the next massive change of direction.
