u.today
Popular meme cryptocurrency Dogecoin (DOGE) is experiencing a new stress test in its growth trajectory. The meme coin’s ability to attain new price levels depends on whether it can pass current resistance levels.
What's happening with Dogecoin
The Dogecoin network numbers are mostly bullish. However, they are at a tipping point, where the balance may soon skew toward the point where the price may begin to consolidate.
DOGE is up by 1.5% in the past 24 hours to $0.1089 at the time of writing. This latest bullish figure comes as DOGE sheds its losses for the past week, increasing by 2%.
Despite this price uptick, DOGE faces a critical stress test, as the trading volume tells a different story. Within the past day, trading volume declined by 30% to $539 million, meaning investors are less willing to trade the coin.
If trading volume declines, Dogecoin’s price could follow the same trend.
DOGE whales increase activity
Still, DOGE remains an asset of interest among large investors as consolidation grips the majority of altcoins in an ultimate push for recovery. According to a U.Today report, Dogecoin whales have accumulated over two billion DOGE over the past week. On-chain analyst Ali Martinez views the surging whale activity as a sign that DOGE is about to stage a bull run.
Martinez highlighted DOGE's recent 65% decline as an indication that it could be preparing for the next big rally. He said DOGE may rally 200% first, pulling back by 60% before staging a massive rally. Martinez based his forecast on Dogecoin’s historical performance. The analyst believes DOGE is on track to repeat previous bullish historical patterns.
Also, Dogecoin’s ability to break current resistance levels hinges on ecosystem developments and broader market conditions. Therefore, only time will tell what Dogecoin’s next big move will look like.