Dogecoin Price Analysis: Can DOGE Break $0.2 Resistance Before May Ends?

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Dogecoin Price Analysis: The fourth week of May began with a bang as the altcoin market saw significant inflows following Ethereum’s price surge to $3700. Over the past 24 hours, ETH has risen by 18.8%, likely due to anticipation of the launch of the first spot Ethereum ETF. Among several altcoins, the canine memecoin DOGE has shown notable growth, breaching a key resistance level and ending a seven-week correction, signaling a shift in market dynamics.

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DOGE Breaks Resistance Amid Market Recovery, Eyes 35% Rally

BINANCE:DOGEUSDT Chart — Dogecoin Price Analysis| Tradingview

Following the intense downtrend over the past few weeks, the DOGE price finally exceeds the overhead resistance trendline after multiple bearish reversals. The bullish comeback for the meme coin comes with the broader market recovery as the Bitcoin price surpasses the $71,000 barrier.

The meme coin has increased by 9.7% over the last 24 hours to trade at $0.164 currently. This leads to two consecutive bullish candles exceeding the resistance trendline and challenges the crucial horizontal resistance of $0.17.

As the broader market recovery continues with the Ethereum ETF approval anticipations growing strong, the DOGE coin is expected to continue the bull run. In case of a breakout of the horizontal resistance at $0.17, the breakout rally for the DOGE price could reach the previous peak at $0.228.

This accounts for a price jump of 35% percentage. However, a bearish reversal from the horizontal resistance could retest the broken resistance trendline. In the shorter time frame, the Dogecoin price action also displays an inverted head and shoulder pattern, which is a bullish continuation pattern.

The neckline for this pattern stands at $0.17. Currently, the DOGE price shows the bullish breakout of this inverted head and shoulder pattern, which is a bullish indication for the sideline traders.

Technical Indicator

Exponential Moving Average: A bullish crossover between the 20-and-50-day EMAs could accelerate the current bullish momentum.
Average Directional Index: The recent breakout aligned with ADX’s uptick at 16% highlights an active attempt from buyers to rally further.

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