thecryptobasic.com
Dogecoin (DOGE) has reached a critical decision point, with the meme coin’s next move set to define its direction for the next few weeks.
This comes after a significant bearish pull in the crypto market on Tuesday. During the downturn, Dogecoin fell to $0.3673, having traded much higher at $0.4370 on Monday.
As of now, the meme coin has not fully recovered from the dip. Despite a 5% surge in the last 24 hours, DOGE is still trading within the $0.39 range.
Dogecoin Could Plummet to $0.34 or Rally to $0.43
In this latest Dogecoin price news, market analyst Ali Martinez pointed out that Dogecoin is facing a crucial resistance level. He explained that a sustained break above $0.40 would help maintain the bullish momentum and potentially push the price back to $0.43.
However, he also warned that if Dogecoin fails to break through the $0.40 resistance, it could trigger another major dip, possibly to $0.36 or even $0.34.
Considering that Dogecoin reached a multi-year high of $0.4775 just four days ago, revisiting $0.34 would mark a painful 29% loss for recent investors.
Those Who Survive the DOGE Dip Could Be Rewarded
Meanwhile, Martinez reiterated that Dogecoin tends to experience periodic price dips after speculative price pumps, which is consistent with historical trends. He has even warned of a likely 84% price correction before a major historical run could occur.
In his view, those who cannot withstand a 30% to 50% correction do not deserve to benefit from a 9,000% to 30,000% speculative price pump.
As a result, he has urged market participants to view every dip as a buying opportunity rather than panic. Meanwhile, other analysts are more optimistic about a bullish continuation for Dogecoin rather than a dip to $0.34.
As reported by The Crypto Basic, multiple analysts agree that Dogecoin is preparing to break toward the $0.5000 region after consolidating in the $0.4000 range for the past two weeks.
New Bullish Factor for Dogecoin
Interestingly, a key factor now supporting higher prices for Dogecoin is the introduction of a pioneering exchange-traded product (ETP) tied to Dogecoin by asset manager Valour. This product allows traditional investors in Sweden to gain exposure to the meme coin.