- Dogecoin price continues to stabilize around the 100 twelve-hour moving average.
- Although the meme-coin seems to be consolidating, it is heading towards a key resistance point.
- Breaking through this hurdle could see DOGE target $0.58.
Dogecoin price has rebounded over 67% since the recent market crash. Even though DOGE is trading in a downward trend, recent developments may aid in propelling the meme-coin higher.
Dogecoin price ready to escape downtrend
Dogecoin price appears to be consolidating after a month of bullish momentum, which drove it to an all-time high of over $0.74. However, Tesla CEO Elon Musk continues to show support for the DOGE, suggesting that he prefers the cryptocurrency because it has “dogs and memes.”
It is important to note that Musk’s tweets have worked in favor of the bulls.
The recent swing low pushed Dogecoin price down to $0.21, dipping over 70% from its record high. DOGE has continued to form lower lows and lower highs since May 8, resulting in a descending parallel channel on the 12-hour chart.
Now, Dogecoin price could be approaching a turning point from the recent bearish divergence, as it heads towards the upper boundary of the parallel channel. Breaking through this hurdle could result in a 65% rally toward $0.582.
DOGE/USDt 12-hour chart
Coincidentally, the $0.355 to $0.366 area acts as a challenge for Dogecoin bulls, as IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model shows 75,400 addresses holding 3.90 billion DOGE around this price level.
Such a massive supply cluster could be a strong resistance before more upside potential could be expected for Dogecoin price.