Dogecoin Surges: Chart Signals Big Bullish Move Ahead?

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If the recent technical advancement on the Dogecoin (DOGE/USD) graph is any indication, it could signal a bullish trend as long as the current support levels remain steady, as suggested by crypto market analyst Kevin (@Kev_Capital_TA). For about a month now, DOGE has been following a descending path. However, it seems to be bouncing back from the previous resistance line of this channel, which is typically noticed by traders seeking an uptrend.

Dogecoin Price Ready To Skyrocket?

On January 19th, Sunday, Kevin pointed out that Dogecoin had been moving within a declining trendline for more than a month, and was now testing the upper limit of this trend. He emphasized the importance of Dogecoin holding its ground at this level and bouncing back, as failing to do so could lead to a reevaluation of the chart’s outlook.

So far, the cryptocurrency appears to be holding up its recently established support level. After a brief dip to approximately $0.345, it closed two extended wick candles within the four-hour timeframe above the trend line. Kevin highlighted this “strong bounce off the retest” and its proximity to significant four-hour moving averages, implying a possible increase in price values.

Currently, Dogecoin hovers near $0.38-$0.39, demonstrating strength at its previous resistance-turned-support. Kevin observed: “Dogecoin is experiencing a decent rebound from the retest of the falling trend I’ve been monitoring, in conjunction with its crucial 4-hour moving averages. Impressive.

In summary, although Dogecoin appears strong from a technical perspective, Kevin points out that alternative cryptocurrencies like it are significantly influenced by Bitcoin‘s trajectory and market leadership. He highlights that the current bull run has not seen an “altseason” as we know it yet. According to his analysis, altcoins are unlikely to consistently surpass Bitcoin unless Bitcoin’s dominance drops below 54.51% and Tether’s (USDT) dominance dips beneath 3.7%.

As a researcher, I’ve noticed that Bitcoin’s dominance was approaching 59%, which I refer to as challenging the “macro golden pocket.” This could potentially undermine the performance of other cryptocurrencies, including Dogecoin. If Bitcoin manages to maintain its lead above these critical dominance levels, it seems plausible that the short-term outlook for most altcoins, including Dogecoin, might remain limited, despite their individual charts showing promising trends.

A new element causing instability in the cryptocurrency market is the upcoming memecoin launch by the incoming U.S. President, Donald Trump. Interestingly, Kevin noted that the crypto market had appeared “the strongest” it had in four years, citing an increase in popularity for higher-quality utility coins and a trend of investors moving towards quality options.

Yet, he maintains that within 36 hours, individuals near Trump introduced a meme-based cryptocurrency which apparently disrupted this trend. This action led to increased interest in meme coins and caused many robust projects to drop by double-digit percentages. Although he refers to this commotion as merely a “temporary detour,” Kevin is optimistic about the future, stating that “although it might take several weeks, I remain confident we’re in a solid position.

Keep an eye on Dogecoin as it tries to maintain its position above the recently tested channel line. If there’s a strong upward move beyond the $0.40 to $0.41 range, it could strengthen the bullish argument, particularly if overall market conditions remain favorable. However, a rise in Bitcoin’s dominance and potential resurgence of meme coin hype might bring new challenges.

At press time, DOGE traded at $0.38.

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2025-01-20 11:10