Dogecoin Seeing Fresh Demand; Could Be Headed Towards $0.40

Dogecoin appears to be seeing a bit of resurgence, as fresh demand emerged at the $0.30 price level on Monday. This demand has allowed the DOGE/USDT pair to hit the $0.32 price mark; a gain of 7.88% on the day.

Elon Musk has been a bit quiet lately after last week’s Twitter storm with the crypto community. In the absence of any fundamental triggers, traders can look at the technical picture to detect future price direction.

Technical Levels to Watch

Dogecoin could hinge its recovery on the breakout of the falling wedge, which is ongoing on the daily chart.

A successful breakout targets the resistance zone that has 0.39 as its floor and 0.43 as its ceiling. Above this zone, renewed resistance comes into play at 0.45, 0.49 (50% Fibonacci retracement) and 0.54 (38.2% Fibonacci retracement).

On the other hand, a rejection at the resistance zone allows for a retest of the 0.30 price level, with 0.24/0.25 and 0.21 forming additional price targets to the south. 0.30 may serve as a barrier that blocks a return move into the pattern, in which case it could become a dip-buying area. 

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Dogecoin Daily Chart

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