Dogecoin’s price action over the past week has seen it trending upwards. This movement has seen the meme cryptocurrency make a push towards the upper end of a consolidation range in the daily candlestick timeframe chart.
A recent analysis shared on TradingView by The_Alchemist_Trader points to a possible shift in momentum, as Dogecoin is retesting its point of control with a bullish reaction that might push it to $0.35 in the short term and as high as $0.6 in the long term.
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Dogecoin Retesting Point Of Control
According to the analysis, Dogecoin is currently testing its point of control, a high-volume resistance area that has defined much of its trading structure in recent months. This price action goes as far back as February with well-defined upper and lower trendlines.
Interestingly, price action volume in the past 48 hours shows that buyers are stepping in aggressively at the mid-level of this range, which is around $0.25. This is very important, and a daily close above the point of control with strong volume would translate from range-bound movement to a defined upward rally.
This bullish reaction comes after Dogecoin bounced at $0.2 last week, a move that created a solid foundation for another leg upward. Now, according to the analyst, the next thing is for Dogecoin to make a close basis above its point of control resistance.
Roadmap To $0.35 Through Fibonacci Levels
Fibonacci extension levels have served as reliable indicators of profit-taking and continuation levels for Dogecoin in the current cycles. As such, many analysts are fond of pointing to price targets at notable Fib levels.
In this case, the analyst noted that a successful breakout above the point of control at $0.25 opens the path toward the 0.618 Fibonacci retracement level. This level, which is positioned around $0.35, stands out as the primary upside target in the current setup.
The chart below shows a projected rally pattern for this breakout with a clear roadmap drawn to the 0.618 Fibonacci extension level. This also includes extensions to the $0.36 price level at the 0.66 Fib extension and the $0.4 price level at the 0.786 Fib extension if the momentum continues.
A move toward $0.35 would represent not just a technical price target but also a strong confirmation that Dogecoin has reestablished bullish dominance above its consolidation range since February. From here, Dogecoin could start holding up above $0.3 again.
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Dogecoin’s short-term movement is now tilted to the upside, provided the price continues to close above the point of control with strong participation from buyers. Volume is the most important thing here, as a breakout without sufficient backing could result in a false move and cause Dogecoin to return to range trading.
At the time of writing, Dogecoin is about to break above the upper trendline of its multi-month range. Dogecoin is currently trading at $0.2874, up by 12.6% and 33% in the past 24 hours and seven days, respectively.
Featured image from Pixabay, chart from TradingView