Dogecoin ($DOGE), a popular meme-based cryptocurrency, has recently experienced a strong rally over the past five weeks. However, it is now undergoing a short-term correction after testing a significant resistance level around 43 cents. With a fully diluted valuation of approximately $54 billion and a daily trading volume of around $15.3 billion, Dogecoin is displaying signs of a potential reversal pattern on the four-hour chart.
Resistance Challenges for Dogecoin
The price of Dogecoin has encountered resistance at the 43-cent level twice in recent days, forming a potential double top pattern. This pattern, combined with a bearish divergence on the Relative Strength Index (RSI), indicates that the price might face further declines in the short term. Traders and investors are closely monitoring these developments, as they could signal changes in market sentiment.
Bullish Outlook for Dogecoin: A Look at the Bigger Picture
Despite short-term challenges, Dogecoin’s long-term prospects remain promising. The cryptocurrency is poised to enter an exciting phase of the 2024/2025 bull market cycle. Since October of last year, Dogecoin has consistently formed higher highs and higher lows on the weekly timeframe, underscoring strong bullish momentum. On shorter timeframes, Dogecoin has established support above 35 cents, which could serve as a foundation for a rally toward 90 cents. However, if this support level fails, the price may find stronger support between 30 cents and 26 cents.
Curious about Dogecoin’s future? Get the inside scoop with our latest Dogecoin price prediction and stay ahead of the game!
Whale Investors on the Hunt
The Dogecoin network continues to attract investors worldwide, boasting over 5.3 million on-chain holders as of this report. Elon Musk’s ongoing support, including his involvement in the D.O.G.E program to enhance U.S. government efficiency, has played a crucial role in drawing more whale investors to the cryptocurrency. Recent on-chain data from Santiment reveals that Dogecoin whales purchased a substantial 140 million DOGE units—valued at over $56 million—within the past 24 hours, indicating strong market interest.
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Whatever happens next, Dogecoin’s story is one to watch closely.
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