Although Dogecoin (DOGE) is still 45% lower than its all-time high of $0.7316 set in 2021, DOGE has achieved a remarkable increase of over 400% so far this year.
At the time of writing, the leading memecoin is trading at $0.404, up 5.6% in the past 24 hours. Analysts believe this price marks a critical moment that could significantly influence Dogecoin's trajectory in the coming days.
Dogecoin hits a critical resistance point
The recent surge has drawn significant attention from analysts. Well-known cryptocurrency analyst Ali recently shared his cryptocurrency technical analysis through his X account.
In the post, the analyst marked a descending channel on Dogecoin's price chart. According to Ali, Dogecoin is currently testing a key resistance level. He stated that if it 'sustains' a breakout above the $0.40 price level, the price could rise to $0.43.
However, if DOGE fails to break above the $0.40 level, the asset could easily see a significant drop again, with prices potentially falling to $0.36 or even $0.34.
Key developments enhance DOGE's bullish position
In addition to price movements, Dogecoin has recently benefited from some positive developments that have boosted investor confidence.
One notable example is that the United States has established a new government agency called the Department of Government Efficiency (DOGE). This acronym is the same as Dogecoin's stock code.
Additionally, crypto fund issuer Valour has launched an exchange-traded product (ETP) for Dogecoin. A press release uploaded earlier today stated:
It is noteworthy that these milestones highlight the increasing institutional and mainstream recognition of DOGE, driving its price to continue rising.
In addition to Alibaba's technical insights, another analyst, Trader Tardigrade, shared a long-term view on Dogecoin. The analyst pointed out that Dogecoin maintains a recognizable wave pattern on the macro chart, predicting that a potential breakout top could drive this cryptocurrency to a high of $20.
