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Dogecoin experienced a modest rally yesterday, breaking its local high and reaching $0.484. The move excited the DOGE community, as the meme coin seemed poised for more gains. However, the price has pulled back a bit, failing to confirm a breakout above this key resistance.
Top analyst and trader Cheds shared his insights on X, revealing that Dogecoin is pushing against its upper range. According to his technical analysis, a confirmed breakout above these levels could set the stage for a significant rally, potentially propelling DOGE to new all-time highs.
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While recent price action has fueled optimism, the market remains cautious, with bulls needing to sustain momentum for any meaningful upside. Cheds highlights the importance of overcoming these critical levels of resistance, stressing that a successful move could pave the way for DOGE to regain its narrative.
With Dogecoin at a critical juncture, the next few days will determine whether the price continues to rise or stabilizes in further consolidation. All eyes are now on the $0.484 mark as traders await confirmation of an exit or signs of renewed selling pressure.
Dogecoin Testing Key Levels
Dogecoin is currently testing key liquidity levels around $0.44 and below the important $0.50 mark, which is sparking a lot of interest among traders. These levels have acted as support and resistance, making them very important in determining the next important move of the DOGE. Analysts believe that a clear new upward trend will emerge if Dogecoin is unable to cross these thresholds.
Top analyst and trader Cheds shared a detailed technical analysis on X, highlighting the ongoing battle of Dogecoin and its high range since November 24. Despite many efforts, DOGE has struggled to ensure a decisive breakout, which could signal the start of a new rally. According to Cheds, once the meme coin clears these key levels, a major rally is likely to follow, which could propel the price to challenge its all-time high for the first time since 2021.
This sentiment is consistent with Dogecoin’s recent price volatility, which shows resilience despite broader market volatility. The coming days are important as traders wait to see if the DOGE can strengthen its output and continue to rise.
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A break above $0.50 and holding that level for a few days will trigger a Dogecoin rally. If the bulls succeed, the market could witness another bullish move, reviving the euphoria that has driven DOGE to unprecedented heights.
Final Pre-Meeting Supply Level
Dogecoin is trading at $0.43 after weeks of sideways consolidation and repeated failed breakouts, leaving investors increasingly frustrated with stagnant price action. Despite efforts to gain higher momentum, DOGE has struggled to break through key resistance levels, and the lack of a decisive result is testing the patience of market participants.
Currently, all eyes are on the level of $0.44, an important threshold for the price of Dogecoin. If DOGE is able to hold above this level in the coming days, a breakout may finally occur, which may lead to a rise to higher resistance levels and reignite investor enthusiasm.
However, downside risk remains significant. If Dogecoin fails to maintain its current levels, it could face a deep retracement, testing low demand areas as investors reevaluate their positions. This could dampen sentiment further, leaving the meme coin vulnerable to further consolidation or even bearish pressure.
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The next few days will be important for DOGE as the market expects a clear move. Whether it defends a break or pulls back to lower levels, Dogecoin’s performance in this range could set the tone for its price action heading into the end of the year.
Featured image from Dall-E, chart from TradingView