As Dogecoin (DOGE) consolidates below a key area, some analysts are suggesting that recent bullish market momentum and whale accumulation could soon push the memecoin price above a key resistance level.
Dogecoin’s massive price move is facing powerful resistance
Dogecoin continued to trade sideways between the $0.093-$0.096 price range on Tuesday after failing to break above a key resistance level. During last week’s market pump, leading memecoin broke the $0.096 barrier for the first time in two weeks, briefly touching resistance at $0.10-0.102 on Friday.
Market analyst Ali Martinez suggested that DOGE is preparing for a massive price move, driven by bull market and whale accumulation. Notably, memecoin recently saw one of the highest transaction volumes this month and one of the highest year-to-date (YTD) volume increases, with transactions exceeding $800 million on April 16.
Additionally, immense holders have accumulated over $330 million in Dogecoin over the past week, signaling crucial demand and confidence in the largest memecoin by market capitalization.
Nevertheless, Martinez also analyzed DOGE’s technical structure, noting that the cryptocurrency has been consolidating in a horizontal channel since the market crashed in delayed January and early February.
As the chart shows, the average value of the channel, around the level of $0.10, has been a powerful resistance barrier for the past three months, and Dogecoin has not managed to regain it despite many attempts.
According to the analyst, only a sustained close above $0.10 could push Memecoin towards local highs and open the door to a retest of the upper resistance at $0.12, a level untested since mid-February.
Eyes Macro Chart by DOGE Parabolic Run
In a series of
As he explained, DOGE recently did just that flashed Bullish divergence twice and the indicators refused to go lower even though the price continues to print lower lows. “This is a sign that selling power is fading and a transition from a downtrend to an uptrend may be just around the corner,” the trader said.
He also shared the macro outlook, confirming that Dogecoin’s starter, a setup ahead of massive growth, is “in place.” According to the chart, this setup took shape in 2016-2017 and led to a massive rally towards the 2018 all-time high (ATH) of $0.175.
“Next will be a breakthrough move towards the Moon. Momentum is gaining momentum,” Trader Tardigrade suggestedadding that “an increase in volume may usher in the next growth stage.”
Bitcoinsensus analyst too common macrocyclical perspective, stating that Dogecoin continues to trade within a immense multi-cyclical structure. A market observer confirmed that the cryptocurrency’s current setup resembles previous DOGE macro-consolidations.
The chart shows that after recovering from previous highs, the cryptocurrency experienced a long consolidation followed by a parabolic rally towards recent highs, with these breakouts leading to gains of 60x and 215x.
“The broader pattern is focusing attention on Cycle 3 as the market watches whether this phase will develop similarly to the previous ones,” Bitcoinsensus said.
Featured image from Unsplash.com, chart from TradingView.com
