Dogecoin Hits Resistance but May Still Climb Higher
Dogecoin’s (DOGE) price rose by 4.9% on November 18, reaching $0.372. However, it appears to have entered a consolidation phase at this level. This may be due to profit-taking by investors who are reallocating funds into cryptocurrencies with lower market caps. The question remains whether DOGE can overcome this barrier and achieve a 200% increase.
Price Stabilizes After Recent Rally
Short-Term Price Movements
DOGE reached an intraday high of $0.3742 before dipping to $0.3501. Currently, its price is 259% higher than it was a month ago, partly driven by the announcement that Elon Musk would head the newly established Department of Government Efficiency (DOGE) under Donald Trump’s administration.
Historical Resistance Zone
The current price marks a level of historical resistance, which Dogecoin has failed to break twice before. Such levels are often used by investors as profit-taking targets, potentially limiting further price growth.
Can Dogecoin Achieve a 200% Rally?
Technical Indicators Suggest a Breakout
Analysis indicates that Dogecoin’s rally might not be over yet. Current candlestick patterns within a triangle reflect market indecision, which often signals a significant move.
Low-volume candles suggest reduced selling pressure, supporting the possibility of a breakout.
The Relative Strength Index (RSI) indicates overbought conditions, increasing the likelihood of a continued bullish trend.
Potential for an Impulsive Move
Dogecoin has previously surged from $0.14 to $0.44, representing the first wave of growth. The current consolidation phase may represent the second wave of correction. If this phase concludes, the third wave could push the price up by 200% to $1.35.
Key Levels to Watch for DOGE’s Price
Resistance and Support Levels
If DOGE breaks out of its triangular pattern, key resistance levels include:
$0.44 – the recent high,
$0.51 – corresponding to the 27.0% Fibonacci extension,
$0.91 – the 161.8% Fibonacci extension.
Support levels to monitor include:
$0.32 – the 38.2% Fibonacci retracement level,
$0.14 – a critical long-term support level.
Factors Driving Dogecoin’s Growth
Influence of U.S. Government Developments
News surrounding the creation of the Department of Government Efficiency (DOGE) and increased support for cryptocurrencies by the U.S. government are providing momentum for Dogecoin’s price growth.
Upcoming Inauguration of Donald Trump
Dogecoin is expected to benefit further from the current sentiment, especially as the inauguration of the new pro-crypto administration approaches.
Conclusion: Path to a 200% Increase
Dogecoin has strong potential for further growth, supported by technical indicators and political developments. If the bullish trend continues, DOGE could see a significant price surge, potentially reaching $1.35.
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