Dogecoin started the new year with an impressive 29% gain from domestic demand levels, attracting investors’ attention and demonstrating resilience in the cryptocurrency market.
As a meme cryptocurrency leader, DOGE is currently testing critical resistance around the $0.40 level, which could determine its next move.
Renowned analyst Bluntz recently shared an in-depth analysis, emphasizing that Dogecoin is in a strategic accumulation phase.
According to Pluntz, this phase lays the foundation for an aggressive surge in the next cycle, which could provide significant gains for DOGE.
Accumulation phases like these often herald an explosive upward movement, especially for assets with strong community support like Dogecoin.
The coming days will be crucial for DOGE in its attempt to break the $0.40 resistance level. If DOGE manages to breakout, it could lead to a bullish rally that cements its position as the market’s favorite coin.
Conversely, failure to break through this area could lead to short-term consolidation, which would delay the expected rally.
Dogecoin continues the rally
Dogecoin has shown strong upward price movement since early November, weathering market volatility and attracting investors’ attention. Despite experiencing a correction, DOGE price has managed to recover, indicating the potential for further growth in the future.
Plantz recently Share technical analysis on X (social media platform)which shows the accumulation phase of the DOGE/BTC ratio.
According to him, this percentage is “still in the accumulation phase,” which indicates that Dogecoin is preparing for a significant rise in this cycle.
Plantz confidently stated that there is no chance of DOGE failing to rise during this rally, which reflects his bullish view on the memecoin.
Although Dogecoin’s prospects look promising, risks still remain. Volatility is a major feature of the cryptocurrency market, and Dogecoin is no exception.
In addition, the broader global economic landscape is also increasing uncertainty, with rising interest rates, inflation and global economic pressures weighing on investor sentiment. These factors can cause sharp fluctuations in DOGE prices.
For long-term investors, Dogecoin’s current accumulation phase may be an opportunity to enter the market before a potential breakout occurs.
However, a cautious approach and risk management remains essential, especially given the unpredictable nature of the cryptocurrency market and global economic dynamics.
If Dogecoin can clear the key resistance level, it could validate Bluntz’s bullish thesis and solidify its position as one of the best performing coins this cycle.
Prices are in consolidation
Currently, Dogecoin is trading at $0.38 after facing resistance at the $0.40 level. This level temporarily halted DOGE’s upward momentum, putting the price into a consolidation phase.
Sideways trading phases like this are not uncommon and can last for days or even weeks as the market gathers strength for the next move.
Despite the calm, optimism remains high among investors and analysts. The $0.43 level has now emerged as crucial resistance for DOGE.
If it can manage a clear breakout above this level, renewed bullish momentum could push Dogecoin to its highest level in recent years or even set a new all-time high.
This achievement is likely to attract renewed interest from retail and institutional investors, supporting its upward movement.
However, the way forward is not without challenges. Market sentiment and broader cryptocurrency trends will play an important role in determining whether Dogecoin can gather strength to move higher.
If the consolidation phase is accompanied by an increase in trading volume and strong buying support, a breakout scenario becomes increasingly likely.
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