Although Dogecoin (DOGE) is still 45% below its 2021 all-time high of $0.7316, DOGE has seen a notable gain of over 400% year-to-date.
At the time of writing, the memecoin leader is trading at $0.404, up 5.6% in the last 24 hours. Analysts suggest that this price marks a critical moment that could significantly influence Dogecoin’s trajectory in the coming days.
Dogecoin reached a key resistance point
The recent rally has attracted the attention of analysts. Renowned cryptocurrency analyst Ali recently shared his technical analysis of cryptocurrencies through his X account.
In the post, the analyst marked a descending channel on the DOGE price chart. According to Ali, Dogecoin is currently testing a critical resistance level. He said a “sustained” breakout above the $0.40 price mark could increase the price as high as $0.43.
However, if DOGE fails to breach the $0.40 level, the asset is likely to face another notable decline that would see its price drop to $0.36 or even $0.34.
#Dogecoin $DOGE is at a very critical resistance point. A sustained break above $0.40 will send it to $0.43, but failing to break through the $0.40 resistance will trigger another decline to $0.36 or even $0.34! pic.twitter.com/fTqpftq3tS
Key Developments Strengthen DOGE’s Bullish Position
Beyond its price movements, Dogecoin has recently benefited from several positive developments that have boosted investor confidence.
A notable example is the creation of a new government agency called the Department of Government Efficiency (DOGE) in the United States. This acronym is the same as the Dogecoin ticker.
Additionally, crypto fund issuer Valor has introduced an exchange-traded product (ETP) for Dogecoin. A press release posted online earlier today said:
Valor Inc., a subsidiary of DeFi Technologies, has listed the Valor Dogecoin ETP (DOGE) on the Swedish Spotlight stock market, marking the first Dogecoin ETP available in the Nordics. This launch expands Valour’s digital asset product line, providing investors with exposure to Dogecoin, which currently holds a market capitalization of approximately $59.5 billion, ranking it as the 7th largest digital asset in the world.
These steps notably highlight the growing institutional and mainstream recognition of DOGE, contributing to the continued rise in prices.
In addition to Ali’s technical insights, another analyst, Trader Tardigrade, shared a long-term outlook on Dogecoin. The analyst highlighted that DOGE maintains a recognizable wave pattern on its macro chart, predicting a potential for an explosion that could see the cryptocurrency reach as high as $20.
Featured image created with DALL-E, tradingview chart