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Dogecoin Consolidates Below Key Supply Level – Analyst Expects Rally Soon

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Dogecoin (DOGE) is consolidating below the critical resistance level at $0.43, a price point that has caught the attention of traders and analysts alike. This key level, which represents a major hurdle, is widely viewed as a starting point for a potential parabolic rally. If DOGE can break through this barrier, it could enter uncharted territory and achieve all-time highs.

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Popular cryptocurrency analyst Ali Martinez recently shared a detailed technical and macro analysis on X, highlighting Dogecoin’s strong potential to continue its bullish momentum. According to Martinez, DOGE is positioned for a parabolic rally, driven by growing interest and increased adoption in the market. His analysis underscores the importance of the $0.43 resistance level, suggesting that a decisive breakout could lead to a significant upward movement in price.

The meme coin, known for its vibrant community and unpredictable price movements, has gained momentum as broader market sentiment turns bullish. With price action consolidating and technical indicators strengthening, Dogecoin appears to be ready to embark on its next major phase. The coming days will be crucial to determine whether DOGE is able to overcome this resistance and achieve the parabolic rise forecast.

Dogecoin is about to enter a bullish phase again

Dogecoin’s history of explosive rises has made it one of the most closely watched cryptocurrencies. The last time DOGE started a major rally, it surged more than 215%, generating significant gains and sparking widespread speculation about its price potential. Now, with the meme coin standardized, investors and analysts are looking to the next big step.

Martinez provided valuable insights into DOGE’s current price action. It indicates that Dogecoin is going through a consolidation phase aggressively, testing investors’ patience during this parabolic path. Drawing comparisons to similar market conditions in 2017 and 2020, Martinez highlights a critical pattern: the emergence of a TD serial sell signal, which often signals a short correction before the rally resumes. This historical perspective suggests that a pause in DOGE may pave the way for a more aggressive surge.

Dogecoin’s Parabolic Phase in 2017 and 2020 | source: Ali Martinez on X

As the broader market continues to rise, expectations for Dogecoin remain high. Many investors are optimistic that DOGE will soon repeat its past performance and embark on a massive upward trajectory.

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Martinez predicts that such a rally would likely be in line with Bitcoin breaking its all-time highs and crossing the $100,000 threshold, a milestone expected as early as next week. If Bitcoin succeeds, Dogecoin could follow suit as it breaks new highs.

DOGE display level test

Dogecoin (DOGE) is currently trading at $0.426, just below the critical resistance level at $0.43. This resistance has so far prevented an upward continuation, making it a pivot point for DOGE’s next price movement. If the price can cross $0.43 and maintain this level for a few days, it could pave the way for a strong breakout and further upward momentum. Investors and traders are watching this area closely as a decisive move could lead to a significant rally.

DOGE is about to break major resistance
DOGE is about to break major resistance | source: DOGEUSDT chart on TradingView

However, the $0.43 mark also represents a potential barrier. A failed breakout at this level will likely trigger a correction, which will pull the price back to retest the lower support areas. In such a scenario, DOGE could drop to around $0.35, depending on broader market sentiment and Bitcoin price action.

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The next few days are crucial as Dogecoin approaches this resistance with growing anticipation in the market. Bulls aim to breakout to maintain the parabolic trend, while bears may seize the opportunity to push prices lower if momentum falters. For now, the $0.43 level remains the key to determining the immediate trend of DOGE and whether it will initiate an upward continuation or face a pullback.

Featured image by Dall-E, chart from TradingView

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