Dogecoin (DOGE) has reached a critical decision point, with the meme coin’s next move expected to set its direction for the coming weeks.
This follows a sharp decline in the crypto market on Tuesday. During the recession, Dogecoin fell to $0.3673, after trading much higher at $0.4370 on Monday.
As of now, the coin itself has not fully recovered from the decline. Despite rising 5% in the last 24 hours, DOGE is still trading in the $0.39 range.
Dogecoin Could Drop to $0.34 or Rebound to $0.43
In the latter Dogecoin Price Newsmarket analyst Ali Martinez sharp It appears that Dogecoin is facing a crucial resistance level. He explained that an extended break above $0.40 would help maintain the bullish momentum and could potentially take the price back to $0.43.
However, he also warned that if Dogecoin fails to break through the $0.40 resistance, it could trigger another major decline, possibly to $0.36 or even $0.34.
Considering Dogecoin hit a multi-year high of $0.4775 just four days ago, revisiting $0.34 would mark a painful 29% loss for recent investors.
Those who survive the DOGE Dip could be rewarded
Meanwhile, Martinez reiterated that Dogecoin tends to experience periodic price drops after speculative price rises, which is consistent with historical trends. He even warned of a likely 84% price correction before a major historic rise could occur.
According to him, those who cannot bear a correction of 30 to 50% do not deserve to benefit from a Speculative price pump from 9,000% to 30,000%.
As a result, he urged market participants to view every dip as a buying opportunity rather than a panic. Meanwhile, other analysts are more optimistic about Dogecoin continuing bullishness rather than falling to $0.34.
As The Crypto Basic reports, several analysts agree that Dogecoin is preparing to cross the $0.5000 region after consolidating in the $0.4000 range for the past two weeks.
New bullish factor for Dogecoin
Interestingly, a key factor now supporting Dogecoin’s price rise is the introduction of a pioneering exchange-traded product. (FTE) linked to Dogecoin by asset manager Valor. This product allows traditional investors in Sweden to gain exposure to the same coin.
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