Dogecoin (DOGE) is back in focus as the market for cryptocurrencies returns. The most visible dog-themed meme coin is back above the $0.17 level of price resistance after several weeks of sideways action. Is DOGE simply going to pump again, or is this the start of a rally that has broken through previous levels of price resistance?
Why Analysts Are Eyeing a Dogecoin Comeback
DOGE is not recovering in a vacuum. Bitcoin and Ethereum are several coins in the cryptocurrency market that are showing bullish activity. Usually, just like the rest of crypto, when Bitcoin and Ethereum price rise, meme coins like DOG make sense to follow through derivative price action – this is generally added by the hype of community participation and altcoins in a bull market similarly exaggerated.
With this note, crypto analysts are more optimistic about DOGE – most observers suggest that this price action to the upside may be a precursory move of price increase momentum that could lead to larger average on Dogecoin price increases, and if this is true, DOGE recovery above $0.17 may be considered a significant breakout level for DOGE and that DOGE could re-visit this previous price rally.
Can DOGE Actually Achieve $4.50 or Even $14?
The notion of Dogecoin skyrocketing into the multi-dollars may sound a little crazy to the average investor, but we’ve seen previously with bull runs that meme coins can deliver unforeseen explosive gains when they start to build momentum. Should Dogecoin follow historic charts, a move towards the mid or upper level of its trading channel could take the price as high as $4.50 or even $14 by the end of this bull market cycle. While we do believe this is an extreme price target, we do not believe it is an unreachable one, especially if DOGE is able to draw another wave of retail and institutional demand, like it did for the 2021 rally.
What could drive Dogecoin’s next upward move?
- Broader Market Sentiment
- As long as Bitcoin and its cousins continue their rise, meme coins tend to see heightened speculation and trading activity.
- Elon Musk and Social Media Hype
- Dogecoin has a long history of responding to high-profile promotions, especially from Elon Musk. Anytime he Tweets or mentions any, including Dogecoin, it could spark another explosive price movement.
- Increased Utility and Adoption
- While Dogecoin started out as a joke, its use as a payment method has increased. More businesses accepting DOGE as a payment could contribute to an uptrend that could be sustained.
Key Resistance Levels to Watch for the Next Breakout
Recently Dogecoin moving over $0.17 is a positive sign, however for a sustained rally there still needs to be clear resistance areas. The first resistance is around the $0.20 area, a psychological level, and there will most likely be some selling pressure at that price which will cause a temporary stall to the movement to the upside. If DOGE can get through that resistance, then the next major zone is approximately $0.35, where it has been a major resistance zone in the past market cycles.
If it can clear this zone, the next major resistance zone for Dogecoin is at $0.50 where many investors who bought at the 2021 highs may be looking to exit. However, if sufficient buying pressure continues to outweigh selling pressure and the bullish momentum continues, this meme coin could continue moving to $1. A level that some people in the Dogecoin community have waited years for market movement to reach.
It will be important for traders to monitor the trading volume and market sentiment. A strong increase in volume combined with added open and volume in Dogecoin futures could signal that a breakout is on the horizon. If price continues to hold below these resistance levels, it is likely to consolidate or pull back temporarily before the next leg up.
What Can Prevent Dogecoin’s Price Surf?
Dogecoin’s outlook in the short to medium term is solid, but there are risks that will result in some loss of the present up momentum. The primary threat is overall market sentiment. Bitcoin and Ethereum are especially susceptible and will show significant corrections and meme coins the DOGE, will be even worse off. As speculative assets, they are far more responsive to overall market sentiment.
Lastly, continued competition within the meme coin space is also a factor. New competing meme coins are emerging, like Shiba Inu (SHIB), that aim to innovate within the meme space, offering staking, integration for NFTs, and simpler assets to use as an alternative to dogecoin. If Dogecoin cannot evolve beyond transactional meme coins, it could become irrelevant during the next bull cycle – assuming that there is one.
All of this is not to frighten overall interest in Dogecoin, but to encourage investors to consider the risks as they approach the meme coin with excitement. It’s suggested that you stay up- to-date on current market movements regardless of your interest in digital assets.
Final Thoughts: Is Now the Time to Watch DOGE Closely?
With Dogecoin breaking above $0.17, and market sentiment improving, the potential is strong for further upward movement. Although it would take a perfect storm of bullish factors to actually get $4.5 or $14 that is still a major possibility.However, as history shows, meme coins are highly volatile and watching for resistance levels and general market behavior would be paramount success or failure. For whoever is betting Dogecoin will make its next big move, the ride may be just beginning.
Editor’s Note: The opinions expressed here by the authors are their own, not those of Impakter.com — Cover Photo Credit: Image by KNFind
