Dogecoin Consolidates but Awaits Growth
This week, Dogecoin’s (DOGE) price remained in a consolidation phase as its recent parabolic rally temporarily paused. On Wednesday, November 20, DOGE traded at $0.3850, slightly below its yearly high of $0.4387.
This stagnation mirrors Bitcoin’s (BTC) movement, which is currently trading within the $90,000 to $94,000 range.
Dogecoin’s Potential Growth Driven by Political Events
Dogecoin may experience a rebound in the coming weeks, thanks to recent political developments in the Trump administration. Donald Trump appointed Howard Lutnick, CEO of Cantor Fitzgerald, as Secretary of Commerce. Lutnick is known for supporting cryptocurrencies, and his firm manages Tether.
Additionally, Elon Musk and Vivek Ramaswamy have been tasked with leading a new Department of Government Efficiency. Speculation also suggests that Trump Media might consider acquiring Bakkt, a crypto-focused company.
Factors Supporting Dogecoin’s Growth
Dogecoin could benefit from a combination of favorable regulations, low interest rates, and increasing investor interest (Fear of Missing Out – FOMO). Its daily trading volume has exceeded $14 billion, surpassing the combined volumes of Shiba Inu, Pepe, and Bonk. Furthermore, open interest in Dogecoin futures has climbed to $3.8 billion, indicating strong demand.
Crypto Analyst Predicts Significant DOGE Price Increase
According to renowned analyst Ali Charts, Dogecoin has substantial growth potential. He predicts the price could rise by 120% to reach $0.82.
Technical analysis reveals that DOGE is holding above the key resistance level of $0.2286, representing the upper boundary of a “cup and handle” pattern. Additionally, Dogecoin is trading well above its 50-day and 200-day moving averages, which recently formed a golden cross – a bullish market indicator.
DOGE has also developed a bullish flag pattern, characterized by a sharp upward movement followed by a triangular consolidation. This pattern typically signals continued gains.
What Could Impact Dogecoin’s Price Movement?
If Dogecoin breaks above the upper boundary of the bullish flag at $0.4387, it could gain further upward momentum. However, this optimistic outlook would be invalidated if the price falls below the support level of $0.3412, the low from November 17. In such a scenario, Dogecoin might face a more significant correction.
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