Dogecoin started the modern year with an impressive 29% raise on local demand levels, attracting investor attention and showing resilience in the cryptocurrency market.
As a leader in meme coins, DOGE is currently testing critical resistance around the $0.40 level, which may determine its next move.
Renowned analyst Bluntz recently shared an in-depth analysis, highlighting that Dogecoin is in a strategic accumulation phase.
According to Bluntz, this phase lays the groundwork for aggressive growth in the next cycle, which has the potential to deliver significant gains for DOGE.
Such accumulation phases often herald a edged upward move, especially for assets with forceful community support like Dogecoin.
The coming days will be crucial for DOGE in trying to break the resistance level at $0.40. If DOGE manages to break out, it could spark a rally that will strengthen its position as a market favorite.
Conversely, failure to break through this zone could lead to short-term consolidation, which would delay the expected growth.
Dogecoin ends the rally
Dogecoin has shown forceful bullish price action since early November, bucking market volatility and attracting investor attention. Despite the correction, the DOGE price managed to recover, indicating the potential for further growth in the future.
Most recently Bluntz share technical analysis on X (social media platform)which shows the accumulation phase in the DOGE/BTC ratio.
According to him, this indicator is “still in the accumulation phase,” which indicates that Dogecoin is preparing for significant growth this cycle.
Bluntz confidently stated that there is no chance that DOGE won’t grow during this bull market, reflecting his bullish view on the meme coin.
While Dogecoin’s prospects look promising, risks remain. Volatility is a key feature of the cryptocurrency market, and Dogecoin is no exception.
Additionally, the broader global economic landscape is also increasing uncertainty, with rising interest rates, inflation and global economic pressures weighing on investor sentiment. These factors can cause DOGE prices to fluctuate wildly.
For long-term investors, Dogecoin’s current accumulation phase may be an opportunity to enter the market before a potential breakout.
However, a cautious approach and risk management remain imperative, especially given the unpredictable nature of the cryptocurrency market and global economic dynamics.
If Dogecoin manages to break through a key resistance level, it could confirm Bluntz’s bullish thesis and cement its status as one of the top performers in this cycle.
Prices in consolidation
Dogecoin is currently trading at $0.38 after encountering resistance at $0.40. This level temporarily stopped the growth dynamics of DOGE, introducing the price into the consolidation phase.
These sideways trading phases are not uncommon and can last for days or even weeks as the market gathers strength for the next move.
Despite the stagnation, optimism among investors and analysts remains high. The $0.43 level has now become critical resistance for DOGE.
If it manages to make a tidy break above this level, the renewed momentum could push Dogecoin to its highest level in recent years or even set a modern all-time high.
This achievement is likely to once again attract the attention of both retail and institutional investors, further supporting the upward movement.
However, the path forward is not without challenges. Market sentiment and broader crypto trends will play a significant role in determining whether Dogecoin can muster the strength to rise.
If the consolidation phase is accompanied by increased trading volume and forceful purchasing support, a breakout scenario becomes increasingly likely.