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Dogecoin is currently testing a crucial demand level after seeing a 23% decline from its local highs of $0.13. As the meme navigates this turning point, the broader cryptocurrency market is anticipating a potential rally in the coming weeks, driven by the Federal Reserve’s recent decision to cut interest rates.
However, October began with increased selling pressure, leaving investors looking for signs of strength in Dogecoin’s price action.
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Senior analyst Mister Crypto shared a bullish outlook, noting that Dogecoin could start its next rally “any time now.” Its technical analysis highlights key support levels and indicates that the current price could be a starting point for a significant upward movement.
Despite the recent decline, many traders remain optimistic that DOGE may soon recover and enter a new bullish phase. All eyes are now on whether Dogecoin can maintain its critical demand level and take off soon.
Dogecoin Testing Critical Demand
Dogecoin is currently surrounded by speculation as investors and analysts offer mixed opinions on its future price action. After several weeks of major ups and downs, the meme coin has seen massive volatility, reflecting broader market uncertainty. Some analysts remain optimistic about Dogecoin’s prospects, while others warn of upside too soon.
Technical analysis Leading analyst Mister Crypto on X points to a possible bullish scenario for DOGE. His analysis highlights the 4-day (4D) price chart, where the ascending triangle pattern has just been broken.
This breakout indicates a potential future rally, which, if achieved, could result in gains exceeding 100%. Mister Crypto’s predictions have sparked renewed hope among Dogecoin traders, who are now carefully managing their risks in anticipation of this potential move.
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However, despite the optimism, there is still no clear confirmation that Dogecoin has entered a new bullish wave. For this bullish scenario to be validated, the price must close above the current demand level and hold support.
Until then, the market remains cautious, and investors are waiting for more price action to confirm whether Dogecoin will explode or continue to trade sideways. With so much speculation and uncertainty, the coming days will be crucial for DOGE’s trajectory.
Price Action: Technical levels to hold
Dogecoin (DOGE) is currently trading at $0.106 after seeing an 8% decline since Monday. The price lost the 4-hour moving average (MA) at $0.107 and the 200 exponential moving average (EMA) at $0.108, putting DOGE in a risky position as it is now testing crucial demand levels.
For bullish momentum to return, DOGE needs to break back above these key indices and reclaim the $0.12 mark. Rising beyond this level could pave the way for a higher push, giving bulls the control they need to change market sentiment. However, the current market environment remains fragile, and any failure to reclaim the 4-hour moving averages may indicate further downside.
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If DOGE fails to maintain its current levels, analysts expect a deeper correction that could take the price down to around $0.08, a major support area.
Traders are watching closely to see if DOGE can stabilize or if there is more downside ahead. This makes the coming days crucial to determine whether the meme coin can rebound or face more selling pressure.
Featured image by Dall-E, chart from TradingView
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