Breaking Barriers: Dogecoin Could Double If Key Resistance Crumbles

Dogecoin (DOGE) is currently at a pivotal juncture, facing significant resistance levels that could significantly impact its future price trajectory. Ali cryptoanalyst Highlights Critical resistance area on the DOGE chart.

Although the asset is currently facing a price decline, he noted that if the price of Dogecoin breaks above this key resistance, we could see a massive rise in the price of memecoin.

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DOGE's Decisive Battle: Overcoming Critical Resistance to Potential Price Rise

In a post published on May 28, Ali highlighted a critical resistance zone between $0.166 and $0.171, supported in particular by collective holdings of around 10 billion DOGE held by 75,500 addresses.

This large accumulation of Dogecoin at these specific price points creates a strong barrier, complicating the asset's ability to rise in value.

Ali hypothesizes that if Dogecoin can effectively cross this resistance, it could lead to a significant price rise. A breakout of this level could lead to a doubling of its current price, paving the way for an attack on the next major resistance mark at $0.322.

This scenario represents a potentially lucrative opportunity for investors but also requires navigating an area of ​​overcrowded holdings that could hinder or drive Dogecoin's rise in the market.

The importance of this resistance area is exacerbated by the current market conditions, as Dogecoin has seen a correction, falling 4.9% over the past 24 hours and settling at a trading price of $1,633.

DOGE price is moving lower on the 4-hour chart. Source: DOGE/USDT TradingView.com

This decline is part of a broader decline in altcoins. Dogecoin's open interest fell by 8.26% over the past day, although open interest volume rose by almost 20% in the same period.

DOGE futures contracts with open interest (USD). | source: Quinglass

Other predictions and market sentiment around Dogecoin

Despite the immediate challenges, some analysts remain bullish on Dogecoin. Mags, a popular cryptocurrency analyst, recently predicted a potential 700% increase in the price of Dogecoin, pushing it above the $1 mark.

This bullish outlook is supported by recent improvements in Dogecoin's on-chain metrics, indicating a strong recovery and promising prospects for the meme coin.

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Mags expressed his enthusiasm for X, noting his investment in DOGE over the past few months in anticipation of big gains.

Featured image from DALL·E, chart from TradingView

BarriersBreakingCrumblesDogecoinDoublekeyResistance
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