Dogecoin Breaks Above MA200, Signals Bullish Trend On Rising Volume
- Dogecoins breakout above the MA200, supported by rising volume, signals strong bullish momentum.
- Higher lows over the past year, combined with increased trading volume, suggest sustained upward movement for DOGE.
- Despite bullish signs, traders remain cautious as market volatility could still impact Dogecoins long-term growth trajectory.
Dogecoin (DOGE) has presented strong bullish tendencies and has broken through its 200-day moving average (MA200) which has acted as a major resistance level and has prevented DOGE from advancing since July. In an X post on Saturday, Alan Sanatana highlighted that this breakout, along with the rising trading volume, has again buoyed the traders sentiments that Dogecoin is likely to pick up its growth trajectory for the long term.
The recent breakout above the MA200 is still considered as the key level for the further Dogecoin growth. In July, the cryptocurrency was unable to break past this level but the rising volume brings more strength to the current uptrend. This is because the daily trading volume has been on an upward trend, which means that the current price rally has better support than before. At the time of writing, DOGE is priced at $0.14417, which is 9.55% up from the previous day.
Source: TradingView
Dogecoins Higher Highs
Besides the breakout, the development of higher highs over the last one year has also played a major role in the bullish view. Dogecoin had a low in August 2023 and another strong higher low in August 2024. The upward movement along with the breakout of the resistance level suggest that Dogecoin may still be on the way up to hit even higher levels in the next couple of months.
Should Dogecoin MA200 hold as it did in July, then it would mean that the breakout is fake. What is different this time around, though, is that the trading volume is much stronger and the price has consolidated for four months, which makes the current uptrend more grounded.
Weekly Chart Signals Growth
On a weekly chart, Dogecoin is also providing potential for buying opportunities beyond the 24-hour view. Its Bitcoin pairing (DOGEBTC) is also on the rise, which makes it even more likely for the token to climb even higher. Traders are optimistic but cautious, and are looking for any indications that the present trend is nearing a top or bottom.
Source: Chart by Alan Santana
In the future, as DOGE continues to trade higher and form a higher low structure, the increasing volume, and the breakout of key resistances suggest that the mid-term trend remains bullish. However, volatility remains the key characteristic of the market, and traders will have to watch for the support levels in order to ensure that this trend is here to stay.
Read more: https://www.tronweekly.com/dogecoin-breaks-above-ma200-signals-bullish/
Text source: TronWeekly
