Dogecoin (DOGE) is showing promising signs of a breakout, potentially pushing its price above $0.33 in the near future.
This technical analysis comes after a bearish week for DOGE, where the coin broke below key support levels and erased the gains it had made throughout January.
Dogecoin’s Breakout: What Analysts Are Saying
On February 7, Dogecoin began moving beyond a significant structure zone, according to crypto analyst Klejdi Cuni.
Between February 5 and February 10, DOGE had been consolidating in a strong range between $0.23 and $0.26, before breaking above the upper trendline. This breakout could set the stage for further price increases, although Cuni cautions that immediate upward momentum may not follow.
Cuni also noted that the broader market sentiment, particularly in response to Federal Reserve Chair Jerome Powell’s upcoming testimony, may impact Dogecoin’s short-term performance.
Short-Term Price Targets for Dogecoin
After the breakout, Cuni identified key short-term price targets for DOGE at $0.286, $0.311, and $0.335. If the cryptocurrency can push past these levels in quick succession, it may open the door for a potential surge above $0.335.
However, the past few weeks have been marked by bearish action, so these targets are more cautious projections.
Despite the bearish trend over the past month, Dogecoin has not yet entered a full-fledged bear market. Investors are currently waiting for signs of renewed strength before making further moves.
Long-Term Outlook: Can Dogecoin Reach $2?
Long-term investors remain hopeful that Dogecoin could eventually reach the much-speculated $2 mark. As long as DOGE holds above the crucial support level at $0.20, these long-term bullish targets remain in play.
At the time of writing, Dogecoin is trading at $0.2536, down 5.3% over the past 24 hours. The cryptocurrency’s future direction remains uncertain, with market factors playing a critical role in determining its next move.
