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

• Above $0.0770 on Thursday, Dogecoin remains steady following a rebound of over 2% the day before.
• Lower DOGE Open Interest points to less leveraged activity, while institutional investors remain inactive for a third week.
• A break above a key resistance trendline on the four-hour chart is possible, according to DOGE’s technical outlook.

Trading above $0.0770 on Thursday after two successive days of gains, Dogecoin (DOGE) is showing signs of a recovery. Falling Open Interest and limited institutional interest have not prevented the meme coin from gaining ground. As the recovery gathers pace, DOGE’s technical outlook points to an upward bias, with a bullish break above a key resistance trendline possible on the four-hour chart.

DOGE struggles to attract investor interest

Even the slightest sign of headwinds can diminish investors’ appetite for meme coins. As the original meme coin, Dogecoin is encountering much the same difficulty: both institutional investors and those using leverage are staying on the sidelines. 

Despite a higher spot price, DOGE futures Open Interest (OI) has fallen from 14.52 billion DOGE on Monday to 13.62 billion DOGE, according to CoinGlass data. The decline points to positions being unwound as traders show little willingness to take risks in DOGE. 

Meanwhile, with no inflows recorded since 14 October, Dogecoin exchange-traded funds (ETFs) have entered a third quiet week. Despite the near-term recovery, this inactivity reflects the similarly subdued appetite for risk in the derivatives market.

Should DOGE’s current recovery continue, however, derivatives traders could return, with institutional investors following as sentiment across the broader crypto market recovers after Democrats swept the US midterm elections.

Technical outlook: DOGE rebound raises prospects of a bullish breakout

At the time of writing on Thursday, Dogecoin is trading around $0.0772, 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 nevertheless remains below a long-term resistance trendline 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 coincides with horizontal resistance.

With the Relative Strength Index (RSI) around 58 and the Moving Average Convergence Divergence (MACD) line still slightly positive, momentum on the four-hour chart continues to look constructive.

The 50-period EMA at $0.0762 offers the first support on the downside. Should DOGE remain below that level after a break, the horizontal base at $0.0723 would come into view. A more pronounced decline could then target the lower support area around $0.0677.

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