Dogecoin (DOGE) Eyes Breakout Despite Losing Top 10 Rank

Dogecoin has flashed signs of a budding breakout on its price chart in recent days. However, headwinds from the resurfacing Elon Musk legal drama look to stretch investor patience as DOGE struggles in 2024.

After days showing network usage growth, the meme coin has lost significant ground this week, even sliding outside the top 10 market cap rankings. The weakness comes as Musk must again testify in court regarding investor lawsuits.

As the drama reignites, DOGE trades hands around $0.08257, with a 3.3% surge in the last 24 hours. This stagnation persists despite Dogecoin managing to overcome long-term falling price channel resistance over the past week.

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Will DOGE hit $0.1 soon?

Bullish technicals still show promise on balance. The recent breakout reclaimed DOGE’s 50-day moving average while drawing buyers to successfully retest prior channel resistance as new support. This textbook reversal setup generally implies upside continuation lies ahead.

Additionally, positive divergence on the daily relative strength index hints that gathering momentum could fuel a continued rally toward the next target around $0.085. That level aligns with Fibonacci resistance and, if cleared, might open the door to finally revisiting the psychologically crucial $0.10 mark.

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Still, by holding decisive breakout gains so far, Dogecoin shows the underlying resilience its critics routinely overlook. If bulls keep consolidating constructively above recent highs, bearish momentum will sustain a chance of cancellation in the coming weeks. This could push the price of DOGE above $0.1.