Dogecoin Charges Towards Key Resistance Ahead of Possible $5 Rally

Dogecoin has been climbing in value over the past 24 hours, reaching $0.09272 and increasing its market capitalization to $15.8 billion. Some analysts see a potential path to $5 for the cryptocurrency, but they note that this is contingent on it breaking above a key resistance level at $0.40.

According to Trader Tardigrade, the weekly chart of Dogecoin shows a developing double-bottom pattern, which typically signals that buyers are attempting to establish a base after a period of weakness. However, the pattern remains incomplete, and a short-term decline could still occur before any confirmation.

The neckline of the formation sits at $0.40, and breaking above this threshold would confirm the pattern and potentially unlock a higher price target. Analyst dogegod noted that the listing of Dogecoin on Robinhood in Europe increases legal trading options for investors in the region.