DOGE targets massive rebound after holding key level
- Dogecoin price had a bullish breakout from a key pattern on the 4-hour chart.
- The digital asset has re-tested the previous resistance level and aims for a 40% rebound.
- However, on-chain metrics show that DOGE faces many barriers ahead.
Dogecoin price has been trading inside a downtrend since February 8 as the hype surrounding the project has faded away, especially after the last announcement from Elon Musk. Nonetheless, the digital asset seems ready for an excellent rebound towards $0.076.
Dogecoin price on the brink of a 40% move
On the 4-hour chart, Dogecoin price had a breakout above a descending triangle pattern with a target of 40% towards $0.076. After the initial spike to $0.064, the digital asset dropped to re-test the previous resistance level, now turned into support, which has held so far.
DOGE/USD 4-hour chart
There is a critical resistance level formed at $0.06, which coincides with the 50-SMA and the 100-SMA points. A clear breakout above this key level will quickly push Dogecoin price up to $0.076 in the short-term.
DOGE IOMAP chart
However, the In/Out of the Money Around Price (IOMAP) model shows steep resistance ahead above $0.054 until $0.06, which gives the upper hand to the bears. The most significant support area is located between $0.048 and $0.049, which means a fall towards this range is likely.