The cryptocurrency market saw a bullish rebound on Tuesday, mainly driven by speculation surrounding a potential Fed rate cut. Bitcoin surged over 4% to hit $65,500, sparking a recovery trend in various altcoins, including DOGE, which reclaimed the $0.1 level. This uptrend was supported by increased network activity, setting Dogecoin up for further bullish movements in the near term.
In recent weeks, Dogecoin made several unsuccessful attempts to break the $0.091 support level during a market correction. However, active demand pressure propelled the asset upwards by 10.3% to $0.11. As a result, the Dogecoin market cap rose to $14.76 billion, with the price breaking through a falling-wedge pattern’s resistance trendline.
The current chart pattern suggests a potential breakout rally, with Dogecoin trading at $0.101 and aiming for the breached trendline for support. The increased network activity is also evident, with 1.93 million transactions processed last week, signaling a resurgence in the cryptocurrency’s usage and potentially impacting its price recovery positively.
Additionally, large holders accumulating significant amounts of Dogecoin have contributed to a positive market sentiment. However, a break below the lower trendline could strengthen sellers’ grip and push the asset back to the $0.091 support level. Overall, the outlook for Dogecoin remains positive, with the potential to challenge the $0.115 resistance and possibly surge further to $0.144.