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Dogecoin started the new year with an impressive 29% rally from the necessary local levels, attracting investors and showing its strength in the crypto market. The leader of the meme coin is now testing critical resistance around the $0.40 mark, a level that could determine its next move.
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Top analyst Bluntz recently shared a logical analysis, stressing that Dogecoin appears to be in a period of strategic accumulation. According to Bluntz, this phase lays the groundwork for an aggressive move later in the cycle, potentially positioning DOGE for major gains. Such periods of accumulation are often precursors to bursts of upward movement, especially for assets with strong social support such as Dogecoin.
The coming days will be crucial for DOGE as it strives to break the $0.40 resistance level. A successful breakout could ignite a bullish rally, cementing Dogecoin’s position as a market favorite. However, failure to clear this area may result in short-term consolidation, delaying the expected rise.
Dogecoin Forms Rally
Dogecoin has shown strong bullish price action since early November, defying market volatility and attracting investors’ attention. Even with its recent correction, the price has been able to stabilize, showing growth that underlines its potential for continued growth.
Bluntz recently shared a technical analysis on X, highlighting an accumulation phase in the DOGE/BTC ratio. According to Bluntz, the rate is “still accumulating,” suggesting that Dogecoin is preparing for a significant rally this cycle. Bluntz confidently stated that “there is no chance” DOGE will not continue during this bull run, reflecting the analyst’s optimistic view of the meme coin leader.
Although the Dogecoin route looks promising, it is important to be aware of the associated risks. Volatility remains a hallmark of cryptocurrency markets, and Dogecoin is no exception. The broader economic climate adds another layer of uncertainty, with rising interest rates, inflation, and global economic pressures influencing investor sentiment. These factors can contribute to periods of sharp fluctuations in DOGE values.
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For long-term investors, the ongoing accumulation phase of Dogecoin may provide an opportunity to enter the market before a possible explosion. However, risk management and a precautionary approach are important, especially given the unpredictable nature of the crypto market and the global economy. If Dogecoin is able to clear key resistance levels, it could confirm Bluntz’s bullish thesis and solidify its status as a top performer in this cycle.
Price Incl
Dogecoin is currently trading at $0.38 after facing resistance at the $0.40 mark. This level temporarily halted DOGE’s upward momentum, putting the price in a consolidation phase. Such periods of sideways trading are rare and can last for several days or even weeks as the market gathers momentum for the next move.
Despite the temporary suspension, optimism remains high for investors and analysts. The $0.43 mark appears as a critical resistance level for DOGE. A clean break above this level would signal renewed bullish momentum, potentially propelling Dogecoin to multi-year highs or even new all-time highs. Achieving this could attract new attention from both retail and institutional investors, further strengthening its upward trajectory.
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However, the path forward is not without its challenges. Market sentiment and broader crypto trends will play a key role in determining whether Dogecoin can muster the momentum to push higher. If the consolidation phase is accompanied by an increase in trading volume and strong buying support, a breakout situation becomes more likely.
Featured image from Dall-E, chart from TradingView