Technical Chart Hints at Bullish Momentum for Dogecoin
Dogecoin (DOGE/USD) shows signs of a bullish move after rebounding from a key resistance-turned-support level. Crypto analyst Kevin (@Kev_Capital_TA) highlights this technical development as a potential signal for an upward trend.
Kevin noted that DOGE had been trading in a falling channel for over a month. On Sunday (Jan 19), the cryptocurrency tested the channel’s upper boundary. Holding above this level is crucial for a bullish breakout.
Dogecoin Defends Support Levels
DOGE dipped to $0.345 but bounced back, closing above the trend line with two four-hour wick candles. This aligns with key four-hour moving averages, indicating potential price strength.
Currently, Dogecoin trades around $0.38-$0.39. Kevin called the bounce “very nice,” suggesting that it supports a bullish case for DOGE.
Altcoins’ Dependence on Bitcoin Dominance
Kevin cautioned that altcoin performance, including Dogecoin, heavily depends on Bitcoin’s dominance. For a sustained altcoin rally, BTC dominance must fall below 54.51%, and USDT dominance below 3.7%.
Bitcoin dominance is near 59%, which could challenge altcoins. Kevin warns this level might suppress Dogecoin’s potential despite its strong chart setup.
Impact of Trump’s Meme Coin on the Market
The recent launch of Donald Trump’s meme coin has added volatility to the crypto market. Kevin observed this event derailed positive market dynamics temporarily.
He believes the market will stabilize within weeks. However, meme coin speculation could introduce fresh challenges for solid projects like Dogecoin.
Key Levels to Watch for Dogecoin
Dogecoin must hold above the retested channel line. A decisive move above $0.40-$0.41 could confirm bullish momentum. Broader market stability is essential for this scenario to play out.
At press time, DOGE traded at $0.38.
