This Latest Price Surge Aligns With Broader Gains Across the Meme Coin Sector

This latest price surge aligns with broader gains across the meme coin sector and has reignited bullish sentiment surrounding the original meme coin.

Dogecoin (DOGE) price is showing signs of a bullish breakout as it approaches the crucial resistance levels following a recent surge in meme coin sector.

Dogecoin price is currently trading at around $0.18, up 12.33% in the last 24 hours at press time.

Despite Elon Musk announcing plans to reduce his involvement with Dogecoin (DOGE) and the Department of Government Efficiency (DOGE)—a fictional department humorously aligned with the coin’s acronym—the meme coin continues to rally.

Musk, who is also the CEO of Tesla and X, recently announced on X (formerly Twitter) that he would be focusing more on Tesla following a significant decline in the company’s profits, adding that his DOGE-related activities will “drop significantly” starting in May.

However, despite concerns over Musk's reduced presence, the Dogecoin network has demonstrated resilience. As market observers noted, the meme coin's value spiked shortly after the announcement, hinting that DOGE may be growing beyond its Musk dependency.

Dogecoin price is consolidating in a descending triangle with fading volume, needing a breakout above the 200 EMA near $0.1822 to target the $0.20 level.

"Dogecoin is showing textbook breakout behavior," said one analyst from CryptoQuant. "The breakout above the 50-day SMA is especially encouraging, and if the coin clears the $0.1809 mark decisively, we could see it push toward $0.21 and beyond."

Dogecoin’s rapid rally has also triggered a wave of liquidations in the futures market. According to data from Coinglass, over $11.6 million in short positions were wiped out as bullish momentum gained traction.

Nearly 85% of these losses came from traders betting against DOGE's rise, which adds further support to the notion that the downtrend may have reached its exhaustion point.

However, technical indicators also show early signs of overheating. The Relative Strength Index (RSI) has climbed above the neutral 50 mark, and the Stochastic Oscillator is currently in overbought territory, suggesting the possibility of a short-term correction before continuation.

From a technical standpoint, Dogecoin's price action shows clear signs of a bullish reversal. Recently, DOGE broke above a key descending trendline resistance, as well as the 50-day simple moving average (SMA). These breakouts suggest a strengthening of the upward trend, reinforced by the formation of a falling wedge—commonly regarded as a bullish continuation pattern.

"Dogecoin is showing textbook breakout behavior," said one analyst from CryptoQuant. "The breakout above the 50-day SMA is especially encouraging, and if the coin clears the $0.1809 mark decisively, we could see it push toward $0.21 and beyond."

Dogecoin's next key hurdles lie near $0.2106 and the 100-day SMA. Clearing those would further validate bullish DOGE price predictions, potentially unlocking a path toward the ambitious $0.27 level.

Dogecoin’s surge is part of a larger meme coin rally led by assets like Shiba Inu (SHIB), PEPE, and BONK, all of which have posted double-digit gains this week. The broader cryptocurrency market has also shown strength, with Bitcoin climbing to a two-month high of $94,500 and Ethereum reclaiming the $1,700 level.

Analysts say the renewed interest in risk-on assets is being driven by improving macro sentiment, rising investor confidence, and technical breakouts across several top assets.

Veteran crypto analyst "Master Ananda" believes that Dogecoin may be nearing the end of a prolonged corrective phase that began in late 2024. The price structure appears to have completed a complex ABC correction, typically followed by an impulse wave—a strong upward move in Elliott Wave Theory.

"Dogecoin has found strong support near its 2024 consolidation zone," said Ananda. "With the correction ending on April 7, DOGE is now positioned for a new impulse wave that could carry it to $0.27 and potentially even higher."

According to the analyst, the next major move could even trigger a 333% rally, bringing Dogecoin value above $0.40 and toward the $0.70 mark seen during the meme coin's previous all-time highs.

While Dogecoin investors must remain cautious of short-term volatility and potential corrections, the overall trajectory appears bullish. With technical indicators favoring upward momentum and the broader meme coin market gaining strength, it seems that DOGE may be poised for a significant breakout.

Still, all eyes remain on critical resistance levels and trading volume. If Dogecoin can overcome the next challenges, it could mark the beginning of a powerful new chapter in the coin's ever-colorful journey.