At the start of the new year, Dogecoin surged impressively by 29% from local demand levels, capturing investors’ attention and showing resilience in the crypto market.

As a leading meme coin, DOGE is currently testing critical resistance around the $0.40 level, which could determine its next move.

Prominent analyst Bluntz recently shared in-depth analysis, emphasizing that Dogecoin is in a strategic accumulation phase.

According to Bluntz, this phase sets the foundation for an aggressive surge in the next cycle, potentially yielding significant profits for DOGE.

Such accumulation phases often signal explosive upward movements, especially for assets with strong community support like Dogecoin.

The coming days will be crucial for DOGE as it attempts to break through the $0.40 resistance level. A successful breakout could trigger a bullish rally, strengthening its position as a market favorite.

Conversely, failure to penetrate this zone could lead to short-term consolidation, delaying the anticipated spike.

Dogecoin Gearing Up for Rally

Dogecoin has shown strong bullish price action since early November, defying market volatility and attracting investor attention. Despite experiencing corrections, DOGE’s price has recovered, signaling further growth potential ahead.

Bluntz recently shared technical analysis on X (social media platform), revealing an accumulation phase on the DOGE/BTC ratio.

He confidently stated that the ratio is still “in an accumulation phase,” indicating that Dogecoin is preparing for a significant rally in this cycle.

Bluntz boldly asserts that there is no possibility of DOGE failing to soar during this bull run, reflecting his optimistic view on this meme coin.

While Dogecoin’s prospects look promising, risks remain. Volatility is a key characteristic of the crypto market, and Dogecoin is no exception.

Furthermore, the broader global economic landscape adds uncertainty, with rising interest rates, inflation, and global economic pressures affecting investor sentiment. These factors could lead to sharp price fluctuations for DOGE.

For long-term investors, the current Dogecoin accumulation phase may present an opportunity to enter the market before a potential breakout occurs.

Nevertheless, a cautious approach and risk management remain crucial, especially considering the unpredictable nature of the crypto market and global economic dynamics.

If Dogecoin successfully surpasses the key resistance level, this could validate Bluntz’s bullish thesis and reinforce its status as one of the top performers in this cycle.

Price in Consolidation

Currently, Dogecoin is trading at $0.38 after facing resistance at the $0.40 level. This level has temporarily halted DOGE’s upward momentum, putting the price in a consolidation phase.

Sideways trading phases like this are not uncommon and can last for several days or even weeks as the market gathers strength for the next move.

Despite the lull, optimism remains high among investors and analysts. The $0.43 level now emerges as a critical resistance for DOGE.

If a clean breakout above this level is achieved, renewed bullish momentum could propel Dogecoin to its highest levels in years or even set a new all-time high.

This achievement is likely to attract new attention from retail and institutional investors, further supporting its upward movement.

However, the road ahead is not without challenges. Market sentiment and broader crypto trends will play a significant role in determining whether Dogecoin can gather strength to move higher.

If the consolidation phase is accompanied by increased trading volume and strong buying support, the breakout scenario becomes increasingly likely.

 

The post Dogecoin Showing Strong Impulsiveness – DOGE/BTC Ratio Reveals Strong Accumulation appeared first on Crypto Breaking News.

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Filed under: News - @ January 6, 2025 1:23 am