Will the ongoing Dogecoin recovery ignite a breakout rally this weekend, pushing the price to the $0.3900 mark?

Amid a quick recovery in the crypto market over the past few hours, the meme coin market cap has surged from $94 billion to its current level of $97.38 billion. As the meme segment experiences a rise in buying pressure, Dogecoin is back in action.

With a 13% increase over the past 7 days, Dogecoin’s market cap now stands at $47.15 billion. With a year-end rally looking increasingly likely, will Dogecoin stage a breakout?

DOGE Price Analysis

On the 4-hour chart, Dogecoin’s price action shows a gradual increase in bearish influence. The lower-high formation following a failed attempt to break above $0.4842 has kept Dogecoin under the resistance of a trendline. This has led to three bearish reversals.

Additionally, the correction phase has resulted in a death cross between the 50- and 200-period SMAs and a bearish crossover between the 100- and 200-period SMAs. This alignment of the SMAs is bearish on the 4-hour chart.

After the death cross, the 50-SMA continues to act as dynamic resistance, keeping Dogecoin’s price under bearish control. Currently, Dogecoin is trading within a consolidation range between the 23.60% and 38.20% Fibonacci levels.

Meanwhile, the crucial support zone at $0.30, along with the 23.60% Fibonacci level, acts as a cushion. Dogecoin is currently priced at $0.3202, forming a bullish engulfing candle, marking a 2.90% increase in the past 4 hours. This recovery counters the 6.48% drop from the previous night, which had formed a bearish engulfing daily candle.

Dogecoin Price Targets

As the intraday recovery gains momentum, Dogecoin is hinting at a potential breakout above the 50-SMA line. This would increase the likelihood of Dogecoin closing above the long-standing resistance trendline.

Further supporting the chances of a breakout rally, the 4-hour RSI shows a bullish divergence between the last two bottom formations within the consolidation range.

If this breakout occurs, the next target will likely be the 200-SMA line, corresponding to the 61.80% Fibonacci level at $0.3913. On the other hand, if Dogecoin closes below the psychological $0.30 mark, it could test the immediate support zone at $0.2664.