Dogecoin Breaks Key Resistance and Enters Expansion

The internet's favorite memecoin enters pre-bull run mode after breaking through crucial resistance, driven by risk appetite and a possible ETF on the horizon. Could this be the start of a new dog stampede?

Dogecoin (DOGE), the meme cryptocurrency that took the internet by storm, gave unequivocal signs of a pre-bull market by forcefully breaking through its 200-day Exponential Moving Average (EMA200), located at $0.2164, and consolidating above this crucial level. This bullish movement is accompanied by a significant increase in trading volume after establishing a solid floor at $0.15 over the past two months. The intense demand for DOGE has surpassed the daily volume average of the past 25 days, confirming both the support and the breakout of resistance, which could now act as a new support level in future sessions.

Dogecoin broke a key technical barrier, the EMA200, with robust trading volume, entering a promising pre-bull market. /TradingView

Risk Demand and Inflation Data Drive Dogecoin's Rise

The renewed interest in Dogecoin is driven by growing demand for risk assets, amid progress in trade negotiations between the United States, the United Kingdom, and China amid the prolonged tariff war. Furthermore, the release of US inflation data on Tuesday revealed a slowdown below expectations, approaching the Federal Reserve's target. This news strengthened the attractiveness of risk assets, as lower inflation could give the Fed room to cut interest rates, weakening the dollar and, traditionally, strengthening cryptocurrencies.

Dogecoin in Expansion Phase and Possible ETF Shake Up the Market

In the short term, Dogecoin is clearly in an expansion phase, currently trading at $0.2396, representing a daily gain of 3.75% and an impressive 42.73% in the last month. This momentum led DOGE to surpass its 50-day EMA by 22%. If the long-term bull market consolidates, traders could look for opportunities to join a new bullish cycle, taking advantage of potential technical dips or corrections. An additional factor that has fueled enthusiasm in the Dogecoin community is the recent announcement by 21Shares, which filed for a Dogecoin ($DOGE) exchange-traded fund (ETF) on the Nasdaq a couple of weeks ago. This news raised expectations of increased institutional adoption and liquidity for the memecoin.

Dogecoin broke a key technical barrier, the 200 EMA, with robust trading volume, entering a promising pre-bull market. Driven by global risk appetite, favorable US inflation data, and the potential arrival of an ETF, the memecoin appears poised for a new growth cycle. However, traders should remain alert to potential technical corrections as the market seeks to consolidate this new bullish phase.

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Cryptocurrency trading is highly volatile and carries significant risks, including the total loss of your invested capital. Consult a financial advisor before making any investment decisions.