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Dogecoin ($DOGE) has recently captured the attention of cryptocurrency investors as it hovers within a bullish descending wedge pattern.
However, weak broader market cues have kept a breakout at bay, leaving many wondering whether one is imminent or if $DOGE will continue to consolidate.
Dogecoin Investors Want a Rise
Despite the current price stagnation in Dogecoin’s price, investor sentiment remains largely bullish. The Global In/Out of the Money (GIOM) indicator shows that approximately 60.72 billion $DOGE, valued at $5.76 billion, is poised for profits.
This supply was acquired between $0.101 and $0.130, a range that has historically acted as a crucial support and resistance zone. The optimism is further supported by the fact that $DOGE’s recent price dips have been met with substantial buying interest.
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Furthermore, Dogecoin’s macro momentum is heavily influenced by Bitcoin ($BTC), as the two cryptocurrencies share a high correlation of 0.92. This correlation means that $DOGE’s price movements are closely linked to Bitcoin’s performance. When Bitcoin experiences price changes, Dogecoin often follows suit, albeit with varying intensity.
Bitcoin’s recent price behavior has been a mix of consolidation and minor uptrends, keeping $DOGE in a similar pattern. However, a downturn in Bitcoin’s price could also dampen $DOGE’s rally, making $BTC’s performance a crucial factor in Dogecoin’s near-term future.
$DOGE Price Prediction: Breaking out Is the Aim
Dogecoin’s price is currently holding above the critical support floor of $0.094. This level has provided a reliable base for price bounces in the past. Despite several attempts, $DOGE has failed to breach the resistance at $0.118, leading to a period of consolidation.
If $DOGE manages to break through the $0.118 resistance, it would also mark a breakout from the descending wedge pattern. Such a move could trigger a 65% rally, with the next target being $0.182. This price level represents a significant gain and also restores confidence in $DOGE’s potential for further growth.
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However, the resistance levels at $0.130 and $0.118 have been tested multiple times in the past, making them formidable barriers. A failure to breach either of these levels could result in continued consolidation above $0.094. In this scenario, $DOGE might struggle to gain upward momentum, leading to the invalidation of the bullish thesis.