Dogecoin (DOGE) is holding strong above a key price level after a minor market dip on Sunday, putting it at a crucial inflection point. The meme coin recently broke out of a monthly downtrend that has kept its price suppressed since late March, signaling a potential shift in momentum.
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Analysts and investors are increasingly optimistic about DOGE’s latest price action, with some predicting that if Dogecoin breaks above the $0.12 mark, it could trigger a larger rally in the meme coin space.
However, the next few days will be critical in determining whether DOGE can lead this recovery or whether it will need a period of consolidation before moving higher. As the broader crypto market searches for direction, all eyes are on Dogecoin to see if it can capitalize on this positive momentum and set the stage for further gains.
Dogecoin Holds Strong Above $0.10
Dogecoin (DOGE) has been trading between $0.092 and $0.115 since early August, forming a consolidation pattern that many analysts believe is a sign of accumulation by smart money. This consolidation suggests that key players may be preparing for a potential breakout.
Some analysts are particularly bullish, claiming that DOGE is breaking out of a monthly downtrend channel that began in late March when Dogecoin was trading at $0.22.
A leading analyst and investor, Daan, shared a technical analysis on showing DOGE breaking out of this downtrend line, which presents a new opportunity for meme coin investors. Daan emphasizes that if DOGE holds above the critical support at $0.105 and can break above the $0.12 level with conviction, the meme coin could rally aggressively to higher prices.
According to Daan, once Dogecoin confirms an uptrend, its price quickly skyrockets, leaving no room for hesitation. Historically, when DOGE enters such phases, it experiences sharp upward movements accompanied by high volatility.
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This potential move has drawn attention to Dogecoin as investors and traders are eager to see if it will continue to dominate the meme coin sector. The coming days and weeks will be critical in determining whether DOGE can sustain its momentum and break through these key resistance levels.
DOGE Price Analysis
Dogecoin (DOGE) is trading at $0.101 after suffering a 7% drop since Friday. Prior to this decline, DOGE was up over 22% from its local lows on September 6, marking a strong recovery in a short period.
Last Friday, the price broke above the 200 4-hour exponential moving average (EMA) at around $0.103, often seen as a sign of short-term strength. However, despite this move, DOGE has struggled to maintain its position above the 200 4H EMA, and recent price action has hovered just below this key level.
To DOGE will regain bullish momentumIt is essential that the price reclaims the 4H 200 EMA and sustains above it. This would provide short-term support and potentially pave the way for higher prices to set. On the other hand, if DOGE fails to close above this EMA, a deeper correction is likely to occur, with the next major support level expected around $0.097.
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As the market remains uncertain, the next few days will be critical for DOGE’s price direction. Investors are closely watching whether it can break above key technical levels or face further downward pressure.
Featured image of Dall-E, chart from TradingView