Dogecoin has been undergoing considerable fluctuations, with a 44% spike followed by a 9% drop since October 10. This tumultuous price activity has prompted analysts and investors to monitor the market with caution, as they ponder Dogecoin’s next move.
Some speculate that DOGE is preparing for a substantial upward movement, fueled by renewed interest and momentum, while others express skepticism, suggesting that the meme coin may be entering a period of consolidation.
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Top crypto analyst Bluntz recently provided a technical overview of Dogecoin, noting its price variation within a 4-hour window. According to Bluntz, the price has interacted with both extremes of this range, resulting in a typical liquidity sweep, which often precedes significant price shifts.
As Dogecoin remains in this volatile climate, market participants are eagerly awaiting additional indicators to discern whether the next move will be an upward rally or a period of consolidation.
Dogecoin Examining Key Liquidity
In light of recent price fluctuations, Dogecoin is testing essential liquidity levels on both the supply and demand fronts. The market’s volatility has led to increased apprehension among investors, many of whom are hopeful for a DOGE rally in the upcoming weeks. Notably, top crypto analyst Bluntz recently shared a technical assessment on X, emphasizing the 4-hour Dogecoin chart that illustrates a clear trading range from $0.15 to $0.133.
Bluntz observes that price movements have swept through both sides of this range—first the highs, then the lows—only to be reclaimed subsequently, indicating a liquidity sweep. Such price behavior is typically witnessed prior to a more substantial directional move, and Bluntz theorizes it might engender a bullish outlook for DOGE in the near future.
He argues that if Dogecoin decisively breaks above this defined range, a significant rally is likely to ensue, potentially propelling DOGE to new heights.
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Nevertheless, while Bluntz’s optimistic view offers encouragement for investors, the current volatility and uncertainty surrounding Dogecoin may still result in lateral trading before any notable breakout materializes. Investors are particularly attentive to a break above the $0.15 threshold, which could signify the onset of the anticipated upward movement.
DOGE Maintaining Above $0.12
Dogecoin (DOGE) is trading at $0.136 after five days characterized by heightened fluctuations and uncertainty. In the past two weeks, the price has surged, and it is currently holding above the critical $0.12 level, which previously served as a strong resistance point in September and has since evolved into a vital demand level. This price point is crucial, as maintaining strength above it could indicate further bullish momentum.
The daily 200 moving average at $0.128 serves as another critical support benchmark for Dogecoin. Sustaining strength above this average would hint at long-term stability and the potential for DOGE to progress toward higher supply zones. Conversely, falling below this level might trigger a retracement, making the recent rally resemble a short-lived “pump and dump” scenario.
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If Dogecoin successfully holds above the $0.12 threshold, a healthy consolidation phase might occur, laying the groundwork for a sustained upward trend. Investors will keep a close eye on this level to determine if the recent price behavior can preserve its momentum or if additional declines lie ahead.
Featured image from Dall-E, chart from TradingView
