Dogecoin Surges 6%: What's Going On?

Dogecoin DOGE/USD is up 6% on Friday, and technical indicators currently present a mix of signals, with several potential bullish breakout scenarios.

What Happened: In a Chart Action video podcast, a technical analyst identified a distinct falling channel pattern following Dogecoin's breakout from a previous falling wedge.

Currently trading below the 0.185 Fibonacci retracement level, Dogecoin continues to form lower highs and lower lows.

The weekly 9-period moving average remains a critical marker.

"If we're below that line, it's a bad position; if we break above it, then this is a good position," the analyst noted, emphasizing how this moving average has consistently served as resistance throughout the recent downtrend.

Also Read: Dogecoin Whales Scoop 220 Million DOGE In March Despite 25% Drop: What Do They Know?

What's Next: In the near term, Dogecoin may need to consolidate before making a decisive move.

"We might have to go sideways for a little bit before we actually start bouncing to the upside," the analyst suggested, explaining that this would allow the 9-period moving average to adjust to a more favorable breakout position.

For bullish scenarios, breaking above the channel's resistance could push DOGE toward the next Fibonacci level at $0.248. The analyst explained, "If we break out, I'd drag this to wherever we break out, and that'll give us a target," potentially around $0.19, depending on the breakout point.

On the downside, support at $0.153 and $0.142 could provide temporary bounces.

However, if these levels fail, the analyst anticipates a potential decline to $0.10. "Ever since we broke right here, I placed a limit order at 10 cents," he revealed, referencing the bottom Fibonacci retracement level from Dogecoin's last major rally.

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