Dogecoin (DOGE), the popular meme-based cryptocurrency, is currently undergoing a crucial stress test that could impact its future price levels. The outcome will depend on whether the cryptocurrency can overcome its current resistance levels.
Bullish Network Numbers Signal a Tipping Point
The Dogecoin network is showing mostly bullish indicators, but it finds itself at a critical juncture. If the momentum shifts, DOGE’s price could enter a consolidation phase. Despite these bullish signs, market conditions are still precarious. The cryptocurrency has shown signs of growth, rising 1.5% in the last 24 hours to reach $0.1089 at the time of writing.
Related article: Dogecoin Breaks Records: 9.4 Billion DOGE Moved—What’s Next?
This marks a 2% recovery from its losses over the past week. However, despite the upward price trend, DOGE is still facing a significant stress test, particularly when it comes to trading volume.
Source: CoinMarketCap
Over the past 24 hours, trading volume dropped by 30%, falling to $539 million. This decline signals that fewer investors are willing to trade the meme coin at this point, which could impact the price in the near future. If this trend continues, DOGE’s price might follow suit and begin to decline.
Large Investors Still See Promise in DOGE
Despite the drop in trading volume, DOGE remains an attractive asset for large investors. Many altcoins, including Dogecoin, are currently in a consolidation phase as they prepare for potential recovery. Dogecoin whales have accumulated more than two billion DOGE over the past week. On-chain analyst Ali Martinez views this surge in whale activity as a precursor to a major price rally.
Related article: Dogecoin Set for 200% Surge After Major Whale Accumulation
Martinez pointed out that Dogecoin’s recent 65% decline could indicate the cryptocurrency is setting the stage for its next big rally. He predicts that DOGE could see a 200% rally, followed by a 60% pullback, before launching into a larger rally. His forecast is based on Dogecoin’s past price movements, suggesting that the cryptocurrency may be poised to repeat historical bullish patterns.
Ultimately, Dogecoin’s ability to break through current resistance will depend on future ecosystem developments and overall market conditions. Only time will reveal Dogecoin’s next major move.
