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Dogecoin has experienced significant volatility, rising 44% followed by a 9% decline since October 10. This dramatic price move has left analysts and investors watching the market cautiously, unsure of Dogecoin’s next move.
Some believe DOGE is gearing up for a huge rally, driven by renewed interest and momentum. Others, on the other hand, are more skeptical, suggesting that the meme coin may be entering a consolidation phase.
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Top crypto analyst Bluntz recently shared a technical analysis on Dogecoin, highlighting that the price has fluctuated within a 4-hour range. According to Bluntz, the price has reached both sides of this range, resulting in a classic liquidity move, a move often seen before a major price shift.
As Dogecoin remains in this volatile environment, market participants are eagerly awaiting further signs to determine whether the next move will be an upward rally or a period of consolidation.
Dogecoin tests crucial liquidity
Following recent price movements, Dogecoin is testing crucial liquidity levels on both the supply and demand sides. Volatility has gripped the market and uncertainty is leading to growing fear among investors, many of whom expect a DOGE rally in the coming weeks. Top crypto analyst Bluntz recently shared a technical analysis on Xhighlighting the 4-hour Dogecoin chart, which shows a clear trading range between $0.15 and $0.133.
Bluntz notes that the price action hit both sides of this range – first the highs, then the lows – before being clawed back, often signaling a liquidity clearing. This type of price movement is often seen ahead of a larger, directional move, and Bluntz suggests this could create a bullish scenario for DOGE soon.
He believes that once Dogecoin definitively breaks above this established range, a massive rally is likely to follow, potentially taking DOGE to new highs.
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While Bluntz’s bullish perspective offers hope for investors, Dogecoin’s current volatility and market uncertainty could still lead to sideways trading before a significant breakout occurs. Investors are closely watching for a break above the $0.15 level, which could mark the start of the expected upward move.
DOGE is holding above $0.12
Dogecoin (DOGE) is trading at $0.136 after five days of heightened volatility and uncertainty. Over the past two weeks, the price has been rising and now remains above the crucial $0.12 barrier, which acted as a strong resistance level in September and has since transformed into a key demand level. This price point is critical, as holding it higher could signal further bullish momentum.
The daily 200 moving average at $0.128 is another crucial support level for Dogecoin. Maintaining strength above this moving average would indicate long-term stability and the potential for DOGE to seek higher supply levels. However, if the price falls below this level, it could trigger a retracement, making the recent rally look like a short-term pump-and-dump scenario.
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If Dogecoin successfully holds above $0.12, a healthy consolidation phase could occur, paving the way for a continued uptrend. Investors will be watching this level closely to determine if the recent price action can maintain its momentum or if more downside developments lie ahead.
Featured image of Dall-E, chart from TradingView
