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HomeCrypto NewsAnalysisDogecoin Price Outlook: Will a 25% Rally Follow, or Is This Another Fakeout?

Dogecoin Price Outlook: Will a 25% Rally Follow, or Is This Another Fakeout?

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Despite a triangle breakout, Dogecoin is pulling back for a critical retest. Will this lead to a bounce back to $0.4157?

As Bitcoin drops below the $105,000 mark, the meme coin sector has experienced a slight pullback. However, recent bullish sentiment has shifted Dogecoin towards a potential recovery rally. With growing market optimism, investors are staying vigilant, waiting for the next move.

Currently, DOGE is trading at $0.3277, with a market cap of $48 billion in the $92 billion meme coin sector. As the leading meme coin, Dogecoin continues to attract attention from traders, presenting a potential breakout rally.

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Dogecoin Analysis Reveals 25% Bullish Potential

On the 4-hour chart, Dogecoin broke above the local resistance trendline, as our last analysis predicted. However, this bullish breakout fails to sustain momentum, resulting in three consecutive bearish candles.

The recent rejection indicates a momentary struggle between bulls and bears. This comes as a retest of the broken resistance trendline, but DOGE also fails under the 38.20% Fibonacci level at $0.33.

COINBASE:DOGEUSD Chart Image by Trojan69420

Amid the short-term decline, the 24-hour volume has also plunged, signaling reduced market activity.

Meanwhile, the accumulation/distribution indicator reveals stagnancy near 17.61 billion, suggesting indecision among traders. As volumes decline during the retest phase, the chances of a post-retest reversal have significantly increased. If buying pressure builds up, a quick rebound may follow.

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Dogecoin Speculations Shift, Funding Rate Reveals Underlying Strength

As volatility in the broader market increased, the Dogecoin derivatives market witnessed a quick shift. The open interest of Dogecoin has declined by 1.14% to $3.96 billion, reflecting reduced participation from traders.

Dogecoin Derivatives
Dogecoin Derivatives

Furthermore, the long-to-short ratio over the past 24 hours is at 0.9755, which indicates a higher number of bearish positions and an uncertain short-term sentiment.

Despite the declining Dogecoin prices, the funding rate remains at 0.0088%. This reflects the strength of bullish players who are willing to pay the premium to hold long positions.

Their confidence remains intact as they anticipate Dogecoin to rally further, pushing prices towards key resistance levels.

Analyst Projects 10% Hike in DOGE

Supporting the chances of a bullish recovery, crypto analyst Ali Martinez has highlighted a symmetrical triangle breakout in Dogecoin. In an X post, Martinez noted the breakout rally in DOGE is likely to challenge the $0.36 mark.

This indicates an upside potential of nearly 10%. However, the ongoing pullback has brought DOGE down to $0.3277 from its previous level of $0.33807. If buying momentum resumes, DOGE could quickly reclaim lost ground.

Key Dogecoin Levels

Based on the Fibonacci levels, a potential post-retest reversal will likely challenge the 78.60% Fibonacci level at $0.4157. This suggests an upside potential of more than 25%, making DOGE an interesting asset to watch.

On the flip side, the $0.30 support level will hold the meme coin against short-term volatility spikes in the market. A breakdown below this level could lead to further corrections.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Author

Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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