This is what could trigger the next bullish wave of DOGE

Dogecoin (DOGE) is currently trading at an important support level of $0.19, providing a solid foundation for the short term upward trend. Although the price has fallen by about 7% in the last 24 hours, the bounce back from the $0.19 level still demonstrates a positive signal in the context of the volatile cryptocurrency market. After rising to the sky by 14% in the past week, DOGE continues to remain stable, reinforcing the belief that the $0.19 level could become a solid support for the price in the future.

Market Structure Change

The bounce back from the support level of $0.19 is not merely a short term rise but also marks a change in the market structure. Previously, the $0.19 level served as a resistance level in May and early June. However, currently surpassing this level indicates that DOGE has transformed it into a new support area, raising hopes that the price may continue to rise. According to analysts, the next price target that DOGE may aim for is $0.25, if the upward trend persists.

The DOGE price chart shows the formation of higher lows, a clear signal of a short term uptrend. In particular, DOGE is trading within a stable price channel, with prices continuously bouncing up from the support level of $0.19. As long as DOGE maintains this price level, reaching the target of $0.25 is entirely possible.

According to analyst Ali Martinez, an important factor will be the trading volume. If this volume continues to rise to the sky, the possibility of DOGE's price breaking through resistance levels and reaching the target of $0.25 is very feasible. However, if the upward momentum weakens and DOGE falls below $0.19, the current bullish structure will be broken, and the price may bounce back to a lower support level.

In addition to the support level of $0.19, another important level that traders need to monitor is the weekly resistance level at $0.213. A break and close above this level could be a sign that the bullish trend will continue, paving the way for higher price targets such as $0.34 and $0.48. Conversely, if the price cannot break above $0.213, DOGE may return to the lower support area between $0.186 and $0.182.

Momentum Indicator and User Situation

The Bollinger Bands indicator (BB) is showing that DOGE is likely to experience strong volatility, as the current price is near the upper band of the BB, indicating strong upward pressure. At the same time, the price is still trading above the 20-day simple moving average, indicating a solid local support level.

The RSI index on the daily chart is at 58, near the neutral level, indicating that DOGE may continue to rise if demand increases, but there is also a possibility of encountering a slowdown in the short term if a downward trend begins to appear.

DOGE Price Chart | Source: TradingViewData from Glassnode also indicates that the number of active DOGE addresses reached 68,268 on July 14. Although it did not peak as high as in previous market cycles, this surge indicates that users are paying more attention to Dogecoin, especially after significant price fluctuations.

Source: GlassnodeIn summary, DOGE is currently in a short term rising structure, with strong support at $0.19 and the next price target at $0.25. Although there are factors to watch such as trading volume and resistance level at $0.213, DOGE is still maintaining its upward momentum and is likely to continue rising if it holds the current price levels. However, a fall below $0.19 could break this structure, causing the price to revert to lower ranges.

Emma