Dogecoin Price Forecast: Can bulls reach key trendline resistance as the rebound strengthens?

• Dogecoin remains supported above $0.0770 on Thursday, retaining the previous day’s rebound of over 2%.
• Leveraged participation appears to be easing as DOGE Open Interest declines, with institutional investors remaining inactive for a third week.
• A bullish break above a key resistance trendline remains possible, according to DOGE’s technical setup on the four-hour chart.

Recovery momentum is building in Dogecoin (DOGE), which holds above $0.0770 on Thursday following two successive days of gains. Neither subdued institutional interest nor falling Open Interest has prevented the meme coin from gaining ground. As the recovery strengthens, DOGE’s technical setup points to an upside bias, with a bullish breakout above a key resistance trendline possible on the four-hour chart.

Why is investor interest in DOGE weakening?

Even a slight sign of headwinds can erode investor interest in meme coins. As the original meme coin, Dogecoin is facing much the same pressure, with both institutional investors and those using leverage staying on the sidelines. 

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

Meanwhile, with no inflows recorded since October 14, Dogecoin Exchange-Traded Funds (ETFs) have entered a third quiet week. The lack of activity reflects the similarly weak risk appetite in the derivatives market, notwithstanding the near-term recovery.

A sustained recovery in DOGE could, however, draw derivatives traders back first and institutional investors thereafter, as sentiment across the broader crypto market improves following the Democrats’ sweep of the US midterm elections.

Technical outlook: Can DOGE’s bullish rebound lead to a breakout?

Holding on to the previous day’s rebound of over 2%, Dogecoin is trading around $0.0772 at the time of writing on Thursday.

On the four-hour chart, DOGE has moved back above the 50-period Exponential Moving Average (EMA) at $0.0762. It nevertheless faces a cap near $0.0786, where a long-term resistance trendline links the highs of October 8 and 29. Should a breakout above $0.0786 be 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 just above zero, momentum on the four-hour chart continues to look constructive.

The 50-period EMA at $0.0762 offers the first downside support. If DOGE breaks below this level and stays there, the horizontal base at $0.0723 would come into view. A more pronounced bearish move 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.)