Emily Walker
Recent fluctuations in Dogecoin’s price indicate a possible return to upward movement amidst increasing volatility in the broader cryptocurrency market. Consequently, multiple analysts in the crypto space are expressing strong optimism regarding the potential growth of this dog-themed meme coin.
Could Dogecoin Be Ready for a Price Surge?
Even with overall negative market trends, Dogecoin is showing positive signs in its pricing. Trader Tardigrade, a noted market analyst, has indicated that DOGE might be preparing for a significant upward shift soon. This confident outlook underscores Dogecoin’s strength and stability despite challenging market conditions. The analyst cites a bullish pattern observed in the DOGE’s three-day chart, highlighting an Ascending Trend Zone.
According to the analyst, Dogecoin has successfully shifted previous resistance levels into support, suggesting a new phase of strength in its price movements. A price rejection has also been noted at this ascending trend zone.
This optimistic trend has caught the attention of investors and traders, who view it as a potential foundation for future gains. Trader Tardigrade asserts that this development is a positive and motivating sign for the market’s trajectory.
Dogecoin’s potential for notable price growth is further indicated by the emergence of an Ascending Channel pattern. This significant formation, recognized as channel up, consists of two upward trends showcasing resistance and support, along with rising highs and lows.
The expert noted that Dogecoin’s formation of this critical pattern from its base suggests it is nearing the upper boundary of the channel. As market sentiment improves, DOGE’s ability to surpass this new pattern could lead to considerable price increases in the upcoming sessions.
Trader Tardigrade also mentioned that a breakout could happen shortly, referencing a significant bullish candle seen in January 2021. He believes that news regarding business magnate Elon Musk’s upcoming role as the head of D.O.G.E (Department of Government Efficiency) in January 2025 could further boost the meme coin’s value, potentially propelling it to new all-time highs.
Continued Bearish Trends for DOGE
Dogecoin is still facing bearish trends, which creates uncertainty about its short-term prospects. This decline has diminished investor confidence, resulting in a nearly 25% drop in trading volume within the last day.
At the moment, DOGE is trading at $0.31, marking a decline of over 20% within the past week. If DOGE manages to regain its positive momentum, the next key resistance level to be aware of will be around $0.337. Technical analyst Justin Bennet believes that a price rally towards $0.48 and $0.74 could occur if the meme coin surpasses the $0.337 threshold on daily and higher time frames.