Dogecoin, the community-driven memecoin, is currently in its consolidation phase. Even though it is in this phase, the coin has managed to skyrocket and reach the $0.45 mark today. According to analysts, memecoin will observe some fluctuations and then could rebound in the coming weeks.
At press time, the memecoin token price stands at $0.4081 with a decline of 3.6% in the last 24 hours. For the month of November, Dogecoin saw an increase of 156.5%
Analyst predicts bullish outlook for Dogecoin
According to a cryptocurrency analyst, currently referencing the chart below, memecoin is testing a critical resistance zone, with a potential target of $0.50 in the event of an upward breakout.
#doge $doge #dogecoin is in a waiting pattern developing towards a breakout towards 0.50 and beyond
We should see which way this breaks down before December 5
If it crashes it should only hit the string support at 0.38 and should bounce back. 4h 105 EMA at this level already, so could it… pic.twitter.com/7DslVgCZdx
– ZG Mapping (@ZackGold16) December 1, 2024
Since the memecoin is community driven, market sentiments remain optimistic and expect a rally by the end of the week. The current trendline and momentum suggest that memecoin could gain strength and break through resistance, fueled by broader market activity.
Support at $0.38 critical for downside protection
From the chart above, the analyst also tries to highlight the strong support around $0.38. The 4-hour AMA 105 aligns with this support, indicating a potential rebound if prices retrace.
Additionally, in a bearish situation, the trendline and exponential moving average (EMA) provide a recovery cushion, reducing the likelihood of a sustained decline.
A likely escape by next week
As memecoins are known for their high volatility, traders are closely monitoring the price of Dogecoin. The outcome of this consolidation phase will provide a springboard to the next important step. A break above the resistance level could give rise to bullish momentum towards $0.50, while a break could lead to a retest of support levels.
Also read: Bitcoin rebounds to $97,000 despite BTC market share falling