Currently, the community-led memecoin Dogecoin is entering a consolidation phase. However, even in this phase, it has managed to break through the $0.45 mark today. Analysts believe that Dogecoin may experience some volatility, but a rebound may be in the next few weeks.
At press time, Dogecoin is trading at $0.4081, down 3.6% over the past 24 hours. However, in November, its price surged 156.5%.
Some analysts believe that the prospects for Dogecoin are still promising
Dogecoin is currently testing a key resistance area, and if it breaks through this area, a potential price target could be as high as $0.50, according to a cryptocurrency analyst.
As Dogecoin is community driven, market sentiment remains positive and a rally is expected this weekend. The current trendline and momentum show that Dogecoin has the potential to break through the current resistance level if driven by broader market activity.
The $0.38 support level is critical
Looking at the chart, analysts point out that there is a strong support level near $0.38. The 105 AMA on the 4-hour chart coincides with this support level, which means that if the price retreats, this position may become the starting point of a rebound.
Additionally, in a bearish scenario, the trendline and exponential moving average (EMA) provide a buffer, reducing the risk of a sustained price decline.
A breakout is possible next week
Dogecoin is known for its high volatility, so traders are paying close attention to price action. The results of this consolidation phase will pave the way for the next big move. A break above current resistance could trigger a bullish move with a price target of $0.50 possible. If the breakout fails, support may be tested again.
