Dogecoin (DOGE) price is maintaining a bullish outlook despite a major correction in the digital assets market this week. The biggest memecoin by market capitalization is maintaining its local bullish structure, which suggests the upside is the most likely scenario.
It appears that the crypto investors are finally taking profits from the recent Bitcoin rally and are rotating them into the altcoins. This effect is evident by the recent surge in the Total 3 market cap, which hit $432 billion, its highest level in more than a year.
As a result, DOGE price has also gained a bullish outlook as the risk appetite of crypto enthusiasts has significantly increased. Despite a pullback in the past few days, multiple confluences are pointing toward another bullish leg in the coming weeks.
This week’s sell-off in the crypto assets occurred due to the surprise exit of the Binance CEO, Changpeng Zhao, who is one of the most revered figures in the whole crypto industry. However, the prices have recovered a lot since the news.
For a better analysis of the DOGE/USD pair, we must also understand the price action of the DOGE/BTC chart which shows the Dogecoin price in terms of Bitcoin.
The following chart shows a very volatile price action of DOGE against the BTC. The two most significant levels on the chart are the $0.00000202 support and the $0.00000219 resistance. As long as the support level holds, there will always be a chance for the popular dogcoin to ascend in terms of Bitcoin.
Dogecoin Price Outlook & Technical Analysis
If we analyze the price action of the DOGE coin on a daily timeframe, we can witness a major breakout from the falling wedge pattern. This breakout has the tendency to push the price as high as $0.10 in the coming weeks.
However, Dogecoin price prediction depends on the outcome of the ongoing retest to confirm this breakout. In case of confirmation, DOGE/USD bulls can aim for a massive upside by putting their stop losses around $0.069.
Another factor that must be taken into account is Bitcoin’s ability to break above $38,000. So if the BTC price fails to breakout, altcoins may start to bleed again. Considering the current market sentiment, the upside seems more likely, but in the workd of digital assets, tides may shift very quickly.