Dogecoin Price Prediction: What Next for DOGE after 13% Gains in 7-Days

Dogecoin Price Analysis

Dogecoin price surged above the $0.11 level on Aug 23, having recorded an impressive 13% upswing within the 7-day timeframe. Recent derivatives market data suggests that the ongoing DOGE rally could potentially set the stage for a major breakout toward $0.15.

Dogecoin Price Finally Breaches $0.11 Resistance

While the crypto market rebounded from the Aug 5 crash, the Dogecoin price rally hit a wall at the $0.11 resistance level. Despite a promising recovery from the early August market crash, DOGE has found itself trapped in a narrow range, unable to gain momentum.

The broader market’s positive sentiment, driven by bullish news like Brazil’s approval of SOL ETFs and Russia’s authorization of crypto mining, initially provided a boost to DOGE. This helped the cryptocurrency rally from the lows of $0.082 to the $0.11 level, capturing significant investor interest.

Profit-taking by short-term traders, coupled with a lack of strong buying pressure, has kept DOGE in a state of indecision. The $0.11 resistance level has proven difficult to overcome, leading to a period of consolidation rather than a decisive move higher.

However, the bulls have regained control of the Doge markets this week. The chart above shows how DOGE finally broke above the $0.11 support on Aug 23, bringing its 7-day timeframe gains to the 13.39% mark.

Yet, despite the weekly gains entering double digits, there are signs that DOGE traders are still betting on further upside. 

Bull Traders Maintain Long Positions Despite Double Digit Gains

 

Despite Dogecoin’s strong performance which has seen it surge 13 between Aug 17 and Aug 23, long traders continue to pile on bullish positions in the Dogecoin futures markets.

 The latest data from the Coinglass Liquidation Map, which tracks the value of active leverage positions around key price levels, provides insight into the current market dynamics.

At the time of writing on Aug 23 DOGE traders have mounted $22.89 million in leveraged long positions against $9.58 million in cumulative short contracts. The fact that long positions significantly outweigh short Dogecoin positions by nearly $15 million suggests that rather than book early profits, bull traders are looking to hold out for more upside. 

If bears are unable to push the price decisively below $0.10, this scenario could entice new entrants to ape in on the rally, potentially driving prices towards $0.15 in the days ahead.

The Coinglass Liquidation Map shows the concentration of leverage positions, with a significant number of long positions around the $0.11 mark, reinforcing the potential for a bear trap.

Dogecoin Price Forecast: A Breakout Toward $0.15 on the Horizon?

Based on current technical indicators and market conditions, the next Dogecoin rally could potentially trigger a breakout past $0.11, with $0.15 being the next major target.

Although the broader crypto market sentiment remains cautious, DOGE bulls are showing notable resilience. This persistence could help Dogecoin maintain relatively high support levels and potentially spark a significant breakout towards $0.15.

The upper Bollinger bands indicator shows that Dogecoin currently faces a major resistance at the $0.11 level.

If the DOGE price manages to break above $0.11, the bullish sentiment could strengthen, leading to a potential rally towards the $0.15 area.

On the downside, the key support is observed at $0.10, where bulls are likely to mount a strong defense. A breach below this level could invalidate the bullish outlook, but a robust rebound could rekindle buying interest, propelling the price toward the $0.15 mark.