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Dogecoin has experienced significant fluctuations over the past week, ranging from a dip below the $0.095 support level to a rebound that encountered resistance at approximately $0.099. After this brief rally, Dogecoin once again faced a downward trend as bullish momentum waned.
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Dogecoin’s decline continued, breaking through multiple support levels until bottoming out at $0.0899. From this low, DOGE has rebounded by over 7.75%, reaching $0.09687 at the time of writing. Although this price increase may seem modest compared to larger market movements, it is noteworthy given the overall state of the cryptocurrency market.
Dogecoin Price Movement
The recent rise in Dogecoin’s value can be largely attributed to a social media post by billionaire Elon Musk on X, formerly known as Twitter. In the post, Musk, the CEO of Tesla and owner of X, shared an AI-generated image of himself sitting behind a desk with a placard displaying the letters “D.O.G.E.” The image was captioned “Department of Government Efficiency.”
While Dogecoin was not explicitly mentioned in the post, it generated excitement among market participants familiar with Musk’s past influence on the meme coin. However, the surge was not substantial enough to result in a significant price breakout.
Despite the initial rise following Musk’s post, Dogecoin’s price remains below its recent seven-day high. It continues to trade within a relatively tight consolidation range. As of the time of writing, DOGE is valued at $0.0956, positioned between a key resistance level of $0.1 (corresponding to the 0.382 Fibonacci retracement level from August 24) and a support level of $0.09 (marked by the 0.786 Fibonacci retracement level from the same period).
Currently, Dogecoin’s market cap stands at $14 billion.
Slight Ascent
Although Dogecoin has seen a slight upward movement, it still faces significant resistance barriers that prevent it from breaking out of its current range. According to the Fibonacci retracement indicator, DOGE holders have considerable work ahead to induce the buying pressure needed to push the price higher. Interestingly, on-chain data from IntoTheBlock indicates that Dogecoin’s trading volume and overall activity have decreased significantly since early September.
This reduced activity increases the likelihood of continued price consolidation in the short term. Without a significant influx of trading volume or a major catalyst, Dogecoin may struggle to gain the momentum needed to break out of its current range.
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However, some on-chain signals, such as the total exchanges netflow, are currently showing bullish trends. In the event of a breakout from the current consolidation, the first short-term price target is around $0.11. Conversely, a breakdown below the support level could see DOGE retest the $0.08 mark.
