Dogecoin Still In Consolidation – Analyst Expects $0,63 If We Get A Breakout
Dogecoin (DOGE) has been trading range-bound for nearly a month, struggling to break above the $0.44 resistance. Despite multiple attempts, the price has yet to regain the local high of $0.48 set in November. This prolonged consolidation has traders and investors nervous as they await a decisive breakout that could signal the popular meme token’s next big move.
Related reading
Top investor Carl Runefelt recently shared his technical analysis of X, emphasizing that DOGE remains in bullish mode. He said this integration phase is part of a broader approach and could bring significant benefits. Runefelt remains optimistic, stating that once Dogecoin breaks out of its current range, it could rally to new highs.
Dogecoin price trend There is a close correlation with broader market dynamics, particularly Bitcoin’s recent surge above $100,000. With altcoins often following in Bitcoin’s footsteps, many have speculated that DOGE may be on the verge of a major breakout.
However, the market remains cautious until DOGE breaks through key resistance levels. The next few days will be crucial in determining whether Dogecoin can break out of its range and resume its upward trajectory.
Dogecoin Still Consolidating
Dogecoin has been stuck in a consolidation range since November 12, leaving traders unsure of its next big move. Despite an impressive rally earlier this cycle, reaching a local high of $0.48 on November 23, the Meme token has struggled to break above this level. Instead, it continues to trade sideways, testing the patience of investors and analysts.
Top analyst Carl Runefelt recently Shared technical analysis of Xhighlighting the formation of a bullish pattern in Dogecoin price action. According to Runefelt, DOGE’s prolonged consolidation could be a precursor to an explosive breakout.
He noted that if DOGE breaks out of the current range, its target could be as high as $0.6350. However, he also warned that it may take some time for this to happen, as Dogecoin has historically required a lot of patience from investors during similar consolidation phases.
Related reading
While current price action may appear indecisive, DOGE has proven in the past that when breakouts occur, they tend to be aggressive and substantial. As Bitcoin leads the market past the $100,000 level, it is expected that altcoins such as DOGE will eventually follow suit. As traders await confirmation of Dogecoin’s next move, all eyes are on key resistance levels.
DOGE strives to break through key levels
Dogecoin is trading at $0.423, reflecting several weeks of strange and lackluster price action. While DOGE had a stellar performance earlier this month, surging 220% since November 5, it now appears to be in a cooling-off phase. The price tested the $0.44 level multiple times but failed to find a daily close above, leaving traders and analysts keeping a close eye on a potential breakout.
A daily close above $0.44 could trigger a sharp rally, as this level serves as a key resistance and psychological hurdle for the market. However, given Dogecoin’s massive rise earlier this month, such a breakout may take time. Following such explosive moves, the market typically consolidates, allowing for profit-taking and the absorption of selling pressure before the next leg higher.
Related reading
Despite slow progress, DOGE’s long-term momentum remains promising. Investors are focusing on its potential to regain bullish energy and push to higher levels. Until then, patience is key as Dogecoin sets the stage for its next big move. The $0.44 level remains crucial, and if DOGE can eventually break through and establish it as support, it will be a sign of renewed strength.
Featured image from Dall-E, chart from TradingView
