Journalist
Posted:
- Dogecoin was holding strong above the upper boundary, thus keeping the path open for a potential rally toward $4.
- DOGE’S MACD was showing a bullish trend with the MACD line positioned above the signal line.
Dogecoin [DOGE], initially created as a meme cryptocurrency, has proven its resilience over time.
Recent technical analysis suggests that Dogecoin was maintaining a strong position above a critical threshold, which could pave the way for a rally toward the $4 mark.
Can Dogecoin keep climbing?
DOGE has been holding above the upper boundary of its trading channel, signaling positive momentum.
Source: X
As observed in the recent technical analysis, the MACD was showing a bullish trend with the MACD line positioned above the signal line, suggesting that buying pressure is dominant.
This aligns with the idea of DOGE possibly pushing higher towards $4.
Source: Coinglass
However, the RSI was at 69.34, approaching overbought territory. While this typically signals a potential correction, the ongoing bullish momentum indicates sustained buying interest.
If DOGE maintains its position without becoming too overbought, it could fuel further upward movement, bringing it closer to the $4 target.
Traders’ confidence grows
However, the Long/Short Ratio highlights a trend of increasing long positions on DOGE.
This rise in long positions suggests growing confidence among traders, which could amplify upward price pressure as more traders bet on price increases.
Source: Coinglass
The consistent shift towards more long positions reinforces the likelihood of Dogecoin moving towards $4, assuming the current bullish sentiment continues.
Fewer sellers, stronger buyers
Also, Netflow data from IntoTheBlock shows a noticeable decrease in DOGE being moved to exchanges for selling.
Source: IntoTheBlock
This reduction in selling pressure suggests that holders are either expecting higher prices or are unwilling to part with their DOGE holdings at current levels.
This decrease in sell-side activity supports the idea of a potential rally, as it reduces downward pressure on the asset.
Dogecoin: Stable or volatile?
Historical volatility data indicates that Dogecoin experienced extreme price swings in the past, notably around, 2400% in 2017. Recently, volatility has decreased, suggesting a more stable phase.
Source: IntoTheBlock
Lower volatility could allow DOGE to experience more consistent upward movements, rather than sharp spikes. However, sudden volatility surges are still possible in the crypto market.
If market sentiment turns more bullish, DOGE’s path toward $4 could accelerate quickly. Favorable technical indicators paint a promising picture for DOGE.
– Read Dogecoin (DOGE) Price Prediction 2025-26
Holding above the upper boundary of its channel is crucial for DOGE’s upward momentum.
While caution is always advisable due to crypto markets’ unpredictability, the current analysis suggests that the path toward a $4 rally is open for DOGE.
