Dogecoin saw a modest rally yesterday, surpassing its local highs and reaching $0.484. The move excited the DOGE community as the meme coin looked poised for further gains. However, the price has since retreated slightly, unable to confirm a break above this critical resistance.
Prominent analyst and trader Cheds shared his thoughts on X and revealed that Dogecoin is pushing against its range highs. Based on their technical analysis, a confirmed breakout above these levels could set the stage for a significant rally, which could push DOGE towards new all-time highs.
While recent price action has generated optimism, the market remains cautious and bulls need to maintain momentum for any significant upside. Cheds highlights the importance of breaking through these critical resistance levels, emphasizing that a successful move could pave the way for DOGE to regain its bullish narrative.
With Dogecoin at a crucial momentThe next few days will determine whether the price continues to rise or stabilizes into further consolidation. All eyes are now on the $0.484 mark as traders wait for confirmation of a breakout or signs of renewed selling pressure.
Key Dogecoin Test Levels
Dogecoin is currently testing key liquidity levels around $0.44 and below the critical $0.50 mark, which has generated huge interest among traders. These levels have acted as support and resistance, making them crucial in determining DOGE’s next significant move. Analysts believe that a clear path to new highs will emerge if Dogecoin can surpass these thresholds.
Leading Cheds analyst and trader shared a Detailed technical analysis on Xhighlighting Dogecoin’s ongoing battle with its range highs since November 24. Despite multiple attempts, DOGE has struggled to confirm a decisive breakout, which would signal the beginning of a new rally. According to Cheds, once the meme coin breaks these key levels, a massive rally is likely, which could push the price to challenge its all-time highs for the first time since 2021.
This outlook aligns with Dogecoin’s recent price dynamics, which are showing resilience despite increased market volatility. The next few days are critical as traders wait to see if DOGE can solidify its breakout and maintain bullish momentum.
Breaking above $0.50 and maintaining that level for several days will catalyze Dogecoin’s rally. If the bulls succeed, the market could witness another parabolic move, reviving the enthusiasm that has historically driven DOGE to unprecedented highs.
Last supply level before a rally
Dogecoin is trading at $0.43 after weeks of sideways consolidation and repeated failed breakouts, leaving investors increasingly frustrated with its stagnant price action. Despite attempts to gain bullish momentum, DOGE has struggled to break through key resistance levels and the lack of a decisive breakout is testing the patience of market participants.
Currently, all eyes are on the $0.44 level, a critical threshold for Dogecoin’s price trajectory. If DOGE manages to hold above this level in the coming days, a breakout could finally materialize, which could lead to a rally towards areas of higher resistance and reignite investor enthusiasm.
However, the downside risk remains significant. If Dogecoin fails to maintain its current levels, it could face a deeper pullback, testing areas of lower demand as investors reassess their positions. This would likely weaken sentiment further, leaving the meme coin vulnerable to continued consolidation or even bearish pressure.
The next few days will be crucial for DOGE as the market expects a clear directional movement. Whether it breaks out or pulls back to lower levels, Dogecoin’s performance in this range could set the tone for price action heading into the end of the year.
Featured image of Dall-E, TradingView chart
Fountain: NewsBTC.com
