Highlights:
- Dogecoin is currently trading at the $0.1280 multi-week resistance
- A rally through the $0.128 resistance could see Dogecoin rally to prices above $0.14 short-term
- Rising Bitcoin’s price and FOMO around meme coins could see Dogecoin rally through resistance
This week, Dogecoin has remained one of the top-performing cryptocurrencies amongst the large-cap cryptos. It has rallied by 14% in this period, outperforming most large-cap cryptocurrencies. However, as with most altcoins, Dogecoin is undergoing some moderate pullback today caused by the broader market slowdown. In the course of a day, Dogecoin dropped by 2.01% and, when going to press, was trading at $0.1208.
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Technical Analysis – Dogecoin Trading at a Key Resistance Level
From the charts, Dogecoin is trading at a key resistance level. It has reached resistance at $0.1280, which proved difficult for the bulls to cross on 29 September. Should the bulls succeed in pushing the price of Dogecoin beyond the $0.1280, then a bullish scenario may present itself. In this case, buyers can expect Dogecoin to rally to around $0.14.
However, if bulls fail to rally the price through $0.1280, two scenarios could play out in the short term. One is a possible consolidation between the $0.1280 resistance and the $0.115 support. Secondly, there is a scenario where Dogecoin bears take control and push the price through the $0.115 support. In such a scenario, Dogecoin could drop to prices as low as $0.10 in the short term. This is a key multi-month support level for DOGE.
Will There Be a Breakout?
Of the two scenarios, a bullish breakout looks more likely. Over the last few days, Bitcoin has gained upside momentum and uplifted the broader market along with it. As Bitcoin’s advances continue, there could be a good chance that money will start flowing into meme coins, as has happened in past cycles.
With Dogecoin already showing potential to rally, a Bitcoin rally through $68k could see Dogecoin rally through resistance. Bitcoin is already sending bullish signals so such a rally is quite plausible in the short term.
Social Media Buzz and FOMO
Another factor that could also support Dogecoin is the rising social media buzz around it. Today, Dima James Potts, a crypto trader, tweeted in praise of Dogecoin. Potts emphasized that the price movement that is now playing out with Dogecoin is similar to the parabolic breakouts during the last market cycle.
In his words, after bouncing off a critical support zone, Dogecoin is fully prepared for a breakout. In his analysis, Dogecoin could make some impressive upward movements if it concludes a weekly candle over the $0.18 mark.
$DOGE $10+ DOGECOIN?!📈
This #DOGECOIN daily chart compares the last cycle's parabolic breakout move with the current cycle. Notice how similar price actions are emerging; after we broke above the yellow line, we retested it and are now moving back up. The next target is the… pic.twitter.com/JdDhcV7npl
— Ðima James Potts (@DimaPotts36) October 16, 2024
Potts has aroused investor interest by stating that after such a price move three years ago, Dogecoin made headlines with growth of over 16,000%. He states that a similar, or even a larger multiplier, could be on the cards. With his words and the price action of Dogecoin over the past few days, it is evident that FOMO is already building up.
Conclusion – Outlook Remains Positive
Despite the potential for a correction if the $0.1280 resistance holds, the overall outlook for Dogecoin remains strong. The broader market is turning bullish, and social media buzz for Dogecoin is rising. Both of these possibilities could lead to a rally in Dogecoin to $0.14 soon.
Some analysts are already sending even more bullish predictions with some arguing that if Dogecoin pushes through $0.18, it could rally to prices as high as $10 in a full-blown bull market. It indicates rising FOMO, which could trigger a bullish price move for DOGE.
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