Dogecoin price remained in a consolidation phase this week as the recent parabolic rally came to a halt.
Dogecoin (DOGE) was trading at $0.3850 on Wednesday, November 20, slightly below its yearly high of $0.4387.
This consolidation mirrors that of Bitcoin(BTC), which ranges between $90,000 and $94,000.
However, it is possible that Dogecoin could rebound in the coming weeks as investors monitor developments within the Trump administration. On Tuesday, Trump nominated Howard Lutnick, the boss of Cantor Fitzgerald, as Commerce Secretary. Lutnick has already supported cryptocurrencies and his company serves as a custodian of Tether.
Additionally, Trump named Elon Musk and Vivek Ramaswamy to head the new Department of Government Effectiveness. There are also rumors that Trump Media may acquire Bakkt, a cryptocurrency company.
A combination of crypto-friendly regulations, fear of missing out, and low interest rates could send Dogecoin significantly higher in the near term.
Dogecoin is also seeing strong demand, as evidenced by its daily trading volume, which reached over $14 billion. This figure exceeds the combined volume of Shiba Inu, Pepe and Bonk. Likewise, open interest in futures contracts jumped to $3.8 billion.
Crypto Analyst Expects Dogecoin Price to Rise
According to Ali Graphicsa well-known crypto analyst, Dogecoin has significant upside potential. He predicts that the price could jump 120%, reaching $0.82.
On the daily chart, Dogecoin remains above a key resistance level at $0.2286, which marked the upper part of the cup and handle pattern.
DOGE is trading well above the 50 and 200 day moving averages, which formed a golden cross a few weeks ago. Additionally, it has developed a bullish pennant pattern, characterized by a vertical rise followed by a triangle formation. In technical analysis, this trend often signals further gains.
Dogecoin is likely to see more upward momentum if it rises above the pennant’s upper end at $0.4387. However, this bullish outlook would be invalidated if the price falls below the support level at $0.3412, its low from November 17.