Dogecoin, a popular cryptocurrency, is showing renewed activity trading above $0.16 despite recent market volatility. Analysts are closely monitoring price movements and trading volumes that indicate potential growth.
Technical Patterns Indicate Potential Upside
Dogecoin's price structure remains within an ascending channel on the weekly chart. The channel's lower trendline has held through multiple tests, including a recent dip near $0.156. If the price trend persists, a breakout above $0.174 could pave the way towards the $0.180 resistance zone and beyond. Analyst CryptoJack noted that Fibonacci retracement levels are highly useful for determining the present movement of prices. The $0.168 level has emerged as a pivot level representing the 50% Fibonacci retracement from recent lows. According to CryptoJack, 'a breakout from the ascending channel could trigger a strong rally,' while the resistance level will be at $0.5696, and the support level is $0.1000.
Price Movements and Support Levels
Dogecoin has remained above the $0.16 support level following a volatile trading week where the price fluctuated between $0.179 and $0.156. Currently, Dogecoin is consolidating near $0.1700, with short-term resistance observed at $0.168 and $0.174. Recent selling pressure pushed Dogecoin away from the $0.180 zone, but steady recovery from $0.156 suggests buyers are stepping in at lower levels. Volume indicators show buying activity has increased in the $0.158–$0.160 support range.
Whale Accumulation and Market Sentiment
Moreover, there is evidence that large investors have continued purchasing DOGE during its slight decline in price. According to data from Santiment, there have been big purchases of DOGE worth around $36 million, which have been aggregated into whale wallets within a month. This level of trading indicates that large investors are anticipating price direction. This buying activity often reflects confidence in Dogecoin’s future, especially when it occurs near support zones.
Dogecoin continues to show signs of potential growth, however, current market conditions require caution. The next few days will be crucial in determining the price direction, especially if Bitcoin remains stable.
