The largest memecoin, Dogecoin (DOGE) joined the party with Bitcoin during the latest rally, in which the meme coin flew away at a resistance level of $0.42 a few hours ago. However, memecoin was immediately thrown below $0.37.
Massive Dogecoin Breakout Expected After Consolidation Pattern
DOGE formed a consolidation pattern after surging over 168.34% in a month, sending its price up from $0.14 to $0.39. This was the third time DOGE encountered resistance at $0.42, making it a crucial psychological barrier before its launch to an all-time high at $0.73. At press time, Dogecoin is hovering around $0.38, with a 1.5% jump in the last 24 hours.
Usually, once the asset breaks the consolidation pattern, a massive breakout in its price is very likely to occur.
Donald Trump’s remarkable victory in the recent US elections, where he made attractive promises for a bright future for the crypto community. He also pledged to create the first Bitcoin reserve in the federal treasury.
Additionally, he named Dogecoin lover Elon Musk as head of the new Department of Government Effectiveness (DOGE). This announcement increased market confidence and investment in DOGE, ultimately causing its price to rise.
Several key technical indicators show that there is still room for a rally in the Dogecoin market. For example, whales have started accumulating DOGE through massive purchases that signal a bull run.
Read also: DOGE could reach $0.82 if it breaks the bull flag pattern