Dogecoin (DOGE) Market Update: Will the Bullish Momentum Return?
Dogecoin (DOGE) has been experiencing a complex phase characterized by resistance and ever-changing market sentiment. Renowned cryptocurrency analyst Alan Santana published a new analysis on TradingView detailing the current state of DOGE.
Santana stated that after notable resistance in May, DOGE exhibited a bearish trend. In August, this trend changed, leading to a bullish wave that pushed the price toward this resistance level, highlighted on the chart with a strong orange line.
DOGE surpassed its historical high in recent price movements, triggering stop-loss orders and significant sell-offs. The deep red of the last three days' candles indicates the beginning of consolidation, clearly demonstrating this sell-off. From this point, Santana outlined two possible scenarios.
The first scenario corresponds to the trend observed in late October, when several trading days led to a surge in bullish momentum, followed by a quick reversal. Santana leans toward the second scenario, which suggests that the price may decline due to the exhaustion of optimistic momentum.
More general market trends influenced Santana's inclination toward the second scenario. He emphasized that his latest analysis of major cryptocurrencies like Solana and Ethereum showed strong negative sentiment. This sentiment was echoed in several bullish and bearish chart patterns across various enterprises.
Additionally, low trading volume supported expectations of market adjustments before the bull market arrives in 2025. Based on current chart data, Santana claims that a price decline is expected given the market conditions.
Aside from this cautious view, CNF previously noted a significant transaction involving 1.74 billion DOGE being transferred to Robinhood, indicating potential sell-off pressure. Such large-scale movements often raise questions about their impact on market pricing.
