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.
#Dogecoin It faces significant resistance between $0.166 and $0.171, with 75,500 addresses holding nearly $10 billion. $dawg. But once you overcome this barrier, #DOGE It has the potential to double, with the next major resistance around $0.322 pic.twitter.com/p02Cks63EI
– Ali (@ali_charts) May 28, 2024
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.
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.
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.
$dawg About to go parabolic..
In the last session, I staked Dogecoin before its price rose 170x.
I've been accumulating Dogecoin over the past few months and my bags are loaded.
I expect a 7x return in this cycle. See you at $1+ 🫡 pic.twitter.com/OeXdDMpJDZ
– Cups (@thescalpingpro) May 25, 2024
Featured image from DALL·E, chart from TradingView