- Dogecoin price bulls aim at rendezvousing at $0.26 after securing higher support above $0.2.
- A double-bottom pattern remains critical for DOGE's recovery.
- As resistance levels flip into vital support areas, Dogecoin's uptrend gains traction.
Dogecoin closed the previous day in the green after rallying from the primary support at $0.16 to highs slightly above $0.2. The trend reversal saw the meme coin change the narrative amid bearish calls to $0.1. Moreover, the appearance of Elon Musk, the self-proclaimed "Dogefather," gave DOGE a boost as more investors flocked to the market to take advantage of the expected upswing.
How Soon Can Dogecoin Price Hit $0.26?
The meme coin is trading at $0.192 after launching from support at $0.16. Despite stepping above $0.2 on Wednesday, Dogecoin encountered resistance at the 50 Simple Moving Average (SMA) on the four-hour chart, cutting short the breakout.
All eyes are glued on cracking the same $0.2 and making headway to $0.2 and $0.26, perhaps before the week's trading comes to an end. Various short-term technical indicators show that Dogecoin is in the bulls' hands.
For instance, the Relative Strength Index (RSI) affirms the bulls' control as it nears the midline. A movement above this level and toward the overbought will accentuate the buyers' presence in the market. In other words, a sharp RSI move north emphasizes the bulls' aggressive approach as Dogecoin takes down key barriers.
DOGE/USD four-hour chart
A double-bottom pattern recently came into the picture as Dogecoin bounced off support at $0.16 for the second time. The pattern is highly bullish and often gives way to a significant price action north.
Therefore, Dogecoin is in the process of lifting higher, especially if the overhead resistance at $0.2 is overcome. In addition, bulls must focus on shattering the seller congestion at the 50 SMA, which delayed the recovery on Wednesday.
The uptrend is also supported from an on-chain perspective, as shown by the IOMAP model by IntoTheBlock. This metric tracks addresses that have bought Dogecoin and groups them in bands alongside the volume attracted. These bands represent key resistance and support levels that can often support or invalidate market trends.
According to the IOMAP, 42,000 addresses previously purchased $7.5 billion DOGE around $0.191. Hence, holding above this range could boost Dogecoin further. The absence of an immense seller congestion zone also adds credibility to the expected upswing, as illustrated in the chart below.
Dogecoin IOMAP chart
It is worth mentioning that closing the day below the robust support at $0.191 could see Dogecoin activate the downtrend. If support at $0.16 is tested, recovery may occur, but DOGE may extend the bearish leg toward $0.1.