Dogecoin (DOGE) has closed above a key support level for the first time in more than 3 months. 

At press time on April 23, DOGE was changing hands at $0.174, having marked a 12.12% gain on the 1-week chart.

Namely, the meme coin closed above its 50-day moving average (MA) on the 1-day chart on April 22, which hadn’t happened since January 18. Shortly before this, DOGE hit and rebounded off a 2-year higher low zone.

Chart expert deems $0.9 a conservative Dogecoin price target

Each time such a rebound and close above the MA has happened, Dogecoin price entered a bullish leg as part of a wider cycle, as noted by renowned chart expert TradingShot in an April 23 TradingView post.

Moreover, in all such instances, the humorous asset’s relative strength index (RSI) indicator showed a bullish divergence, which has happened once again — lending further credence to the technical analyst’s thesis.

Finally, the chart expert set a $0.9 price target, equivalent to a 1.5 Fibonacci extension retracement. Readers should note, however, that this was deemed a conservative price target — as previous Dogecoin price rallies reached the 1.786 and 3 Fib levels.

With that being said, there are several factors at play that could serve to derail the surge. As it is a meme coin, DOGE is significantly more vulnerable to market-wide dynamics than your average cryptocurrency. 

In addition, whales dumped more than 570 million DOGE within a single week recently, after having acquired 80 million within a single day — which could signal that sentiment is not bullish enough to follow through on the promising technical signal pointed out by TradingShot.

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