Dogecoin (DOGE) has been stuck in a range for almost a month, struggling to break above the $0.44 resistance level. Despite several attempts, the price has yet to regain the local high of $0.48 set in November. This prolonged consolidation has kept traders and investors on alert as they wait for a decisive breakout to signal the next major move for the popular coin.
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Leading investor Carl Runefelt recently shared his technical analysis on X, highlighting that DOGE is still trading in an uptrend. According to him, this consolidation phase is part of a broader system which could lead to significant gains. Runefelt remains optimistic, stating that once Dogecoin breaks out of its current range, it could initiate a rally to new highs.
Dogecoin Price Action is closely tied to broader market dynamics, particularly the performance of Bitcoin, which recently surpassed $100,000. As altcoins often follow Bitcoin’s lead, many believe DOGE could be on the verge of a major breakthrough.
However, until DOGE breaks key resistance levels, the market remains cautious. The next few days will be crucial in determining whether Dogecoin can break out of its range and resume its upward trajectory.
Dogecoin still consolidating
Since November 12, Dogecoin has remained in a consolidation range, leaving traders uncertain about its next major move. Despite an impressive rally early in this cycle, culminating with a local high of $0.48 on November 23, the meme coin has struggled to rise above this level. Instead, it continues to trade sideways, testing the patience of investors and analysts.
The best analyst Carl Runefelt recently shared a technical analysis onhighlighting the formation of a bullish trend within Dogecoin’s price action. According to Runefelt, DOGE’s extensive consolidation could be the precursor to an explosive breakthrough.
He notes that if DOGE breaks out of its current range, it could target as high as $0.6350. However, he also warns that this scenario could take time to materialize, as Dogecoin has always required great patience from its investors during similar consolidation phases.
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Although the current price action may seem indecisive, DOGE has proven in the past that its breakouts are often aggressive and substantial once they occur. As Bitcoin leads the market above the $100,000 level, altcoins like DOGE are expected to eventually follow suit. All eyes remain on key resistance levels as traders await confirmation of Dogecoin’s next move.
DOGE struggles to break key levels
Dogecoin is trading at $0.423, reflecting weeks of peculiar and slow price action. Despite its impressive performance earlier this month, rising 220% since November 5, DOGE now appears to be in a cooling phase. The price repeatedly tested the $0.44 level, but failed to achieve a daily close above this level, leaving traders and analysts closely monitoring a possible breakout.
A daily close above $0.44 would likely trigger a significant rally, as this level serves as a key resistance and psychological barrier for the market. However, such a breakout could take time, considering Dogecoin’s massive surge earlier this month. Markets often consolidate after such explosive moves, allowing profit-taking and absorption of selling pressure before the next leg up.
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Despite the slow pace, DOGE’s long-term momentum remains promising. Investors are eyeing its potential to pick up bullish energy and push towards higher levels. Until then, patience is key as Dogecoin lays the groundwork for its next big move. The $0.44 level remains critical, serving as a signal of renewed strength if DOGE can finally break through it and establish it as support.
Featured image of Dall-E, chart by TradingView