Dogecoin started the new year with an impressive 29% increase compared to local demand, attracting investor attention and demonstrating the resilience of the cryptocurrency market.
As the leader in meme coins, DOGE is currently testing a critical resistance level around $0.40, which could determine its next move.
The renowned analyst Bluntz recently shared an in-depth analysis, highlighting that Dogecoin is in a strategic accumulation phase.
Theo Bluntz, this phase lays the groundwork for a strong breakout in the next cycle, potentially bringing significant profits for DOGE.
Accumulation phases like this often precede a breakout upward, especially for assets with strong community support like Dogecoin.
The coming days will be decisive for DOGE in its effort to break the $0.40 resistance. If DOGE breaks through, this could trigger a rally to solidify its position as a favored stock in the market.
Conversely, failing to surpass this zone could lead to a short-term consolidation, which would delay the anticipated breakout.
Dogecoin is poised for a price increase
Dogecoin has shown strong upward action since early November, reducing market volatility and attracting investor attention. Despite undergoing a correction, DOGE's price has rebounded, indicating further growth potential in the future.
Bluntz recently shared a technical analysis on X (social media platform), showing the accumulation phase in the DOGE/BTC ratio.
According to him, the ratio is 'still in the accumulation phase,' indicating that Dogecoin is preparing for a significant price increase in this cycle.
Bluntz confidently states that DOGE is unlikely to increase in price during this rally, reflecting his optimistic view on the meme coin.
Although Dogecoin's outlook seems promising, risks remain. Volatility is a key characteristic of the cryptocurrency market, and Dogecoin is no exception.
Additionally, the broader global economic context adds to the uncertainty, with rising interest rates, inflation, and global economic pressures affecting investor sentiment. These factors may cause significant price volatility for DOGE.
For long-term investors, Dogecoin's current accumulation phase may be an opportunity to enter the market before a potential breakout occurs.
However, a cautious approach and risk management are still necessary, especially considering the unpredictable nature of the cryptocurrency market and global economic dynamics.
If Dogecoin surpasses the critical resistance level, it could confirm Bluntz's bullish thesis and solidify his position as one of the best performers in this cycle.
Consolidation price
Currently, Dogecoin is trading at $0.38 after facing resistance at $0.40. This level has temporarily halted DOGE's upward momentum, placing the price in a consolidation phase.
Such sideways trading phases are not uncommon and can last several days or even weeks as the market gathers strength for the next move.
Despite the temporary lull, optimism remains high among investors and analysts. The $0.43 level has now emerged as a critical resistance point for DOGE.
If it can clearly break above this level, a new upward momentum could push Dogecoin to its highest levels in recent years or even establish a new all-time high.
This performance is likely to attract renewed attention from both retail and institutional investors, further supporting its upward trend.
However, the road ahead is not without challenges. Market sentiment and broader cryptocurrency trends will play a crucial role in determining whether Dogecoin can gather strength to rise higher.
If the consolidation phase is accompanied by increased trading volume and strong buying support, the breakout scenario becomes increasingly likely.