Dogecoin Price Forecast: Bulls eye key resistance trendline as rebound gathers momentum

• Above $0.0770, Dogecoin holds steady on Thursday. The previous day saw a rebound of over 2%.
• Institutional investors remain inactive for a third week, while falling DOGE Open Interest points to less leveraged activity.
• On the four-hour chart, DOGE’s technical outlook points to a possible bullish break above a key resistance trendline.

Above $0.0770, Dogecoin (DOGE) is showing signs of recovery on Thursday. Two consecutive days of gains have supported the meme coin, despite limited institutional interest and falling Open Interest. As the recovery gathers pace, DOGE’s technical outlook favours the upside, with a potential bullish breakout above a key resistance trendline on the four-hour chart.

DOGE investor interest weakens

Even minor headwinds can erode investor appetite for meme coins. As the original meme coin, Dogecoin faces the same challenge: institutional investors and traders using leverage are staying on the sidelines. 

Despite the spot price rising, DOGE futures Open Interest (OI) has fallen to 13.62 billion DOGE from 14.52 billion on Monday, according to CoinGlass. The decline points to positions being unwound as traders remain reluctant to take risks in DOGE. 

Meanwhile, Dogecoin Exchange-Traded Funds (ETFs) are entering their third week of inactivity, having registered zero inflows since 14 October. Despite the near-term price recovery, the absence of flows reflects the subdued risk appetite also evident in the derivatives market.

A sustained DOGE recovery could, however, draw derivatives traders back first, with institutional investors following as broader crypto market sentiment improves after Democrats swept the US midterm elections.

Technical outlook: DOGE rebound raises breakout potential

Near $0.0772 at press time on Thursday, Dogecoin is holding on to the previous day’s rebound of over 2%.

On the four-hour chart, DOGE has regained the 50-period Exponential Moving Average (EMA) at $0.0762. It remains below long-term trendline resistance near $0.0786, drawn through the highs of 8 and 29 October. If a breakout above $0.0786 is confirmed, the next target could be $0.0806, where the 200-period EMA converges with horizontal resistance.

With the Relative Strength Index (RSI) near 58 and the Moving Average Convergence Divergence (MACD) line slightly positive, four-hour momentum remains constructive.

The 50-period EMA at $0.0762 offers the first downside support. If DOGE stays below that level following a break, the horizontal base at $0.0723 would come into view. Further losses could then bring the lower support zone near $0.0677 into focus.

(The technical analysis of this story was written with the help of an AI tool. Know more.)