Dogecoin (DOGE) may not have returned to its 2021 high of $0.73 yet, but it has risen more than 400% this year.

Currently, Dogecoin is selling for $0.404 each, having increased by 5.6% in the past 24 hours. Some analysts say that Dogecoin has reached a critical point, and it could either soar or plummet in the coming days.

Dogecoin Faces a Major Test

Recently, Dogecoin has been rising sharply, attracting the attention of many analysts. A cryptocurrency mogul known as Ali recently posted an analysis on X, stating that Dogecoin is testing a key resistance level.

Ali mentioned that if Dogecoin can consistently stay above $0.4, it might rise to $0.43. However, if it fails to overcome this hurdle, Dogecoin may drop back to $0.36 or even $0.34.

Good News Makes Dogecoin More Popular

In addition to price fluctuations, there have been some good news recently regarding Dogecoin, boosting investor confidence.

For instance, there is a new U.S. government agency with an abbreviation that matches Dogecoin, called the Department of Government Efficiency (DOGE). Additionally, cryptocurrency fund issuer Valour has launched an exchange-traded product (ETP) for Dogecoin, which is the first Dogecoin ETP in the Nordics.

These significant events have made Dogecoin more popular within institutional and mainstream circles, leading to a price increase.

Another Analyst Says Dogecoin Could Reach $20

In addition to Ali's analysis, another analyst named Trader Tardigrade believes that Dogecoin's trend looks quite stable, predicting that it could break out to a new high, with a price reaching $20.

As an experienced cryptocurrency investor, I freely share my insights and experiences. Interested in the crypto space but don't know where to start? Click on my profile to see the introduction to my work and witness the moment of miracles.