Dogecoin price up 6.5%: what’s happening?

DogecoinIt is DOGE/USD The move back above 40 cents has caught the attention of traders, with many expressing optimism about a potential bounce back to new heights.

What happened: After a period of consolidation around $0.40, DOGE is up 6.5% on the day, trading around $0.425 at the time of writing.

Technical analysts are reporting bullish indicators across multiple time frames, fueling speculation about the cryptocurrency’s next move.

Leading trader Eugene Ng highlighted Dogecoin’s resilience after reclaiming the $0.40 mark.

“Recovering 4 hours after simulating a drop below 40°C seems to me to be indeed a healthy consolidation,” he tweeted. “Don’t think we stayed in this area this long just to stop without trying to reach ATH again.”

Kevinanother well-known trader, sharp to emerging bullish signals on a 4-hour time frame, citing a hidden bullish divergence as a critical development.

“Let’s get back above 0.41 cents (.786 Fib) and we will be back in business,” he wrote, highlighting the potential for upside momentum if key resistance levels are breached.

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Others, like the analyst Alian enthusiasm tempered by a reminder of historical patterns.

He compared the current market setup compared to Dogecoin’s previous parabolic runs in 2017 and 2020, which included brief corrections before sustained rallies.

“Dogecoin will test your patience in this parabolic run! Just like in 2017 and 2020, we received a sell signal from TD, anticipating a brief correction before the bull rally continues,” Ali noted.

The excitement around Dogecoin comes amid broader discussions about the future of cryptocurrency, particularly its prospects for institutional adoption.

With a new US administration that has displayed a pro-crypto stance, the possibility of a Dogecoin Exchange Traded Fund (ETF) attracts additional interest.

Currently, Dogecoin remains the sixth largest cryptocurrency, trading at around $0.40 with a market cap of $59 billion.

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