Dogecoin tests a critical liquidity area of around $0.112 after days of choppy price action. While the broader crypto market, led by Bitcoin, is experiencing a notable rise from yearly lows, driven by positive economic data and improving sentiment, Dogecoin has yet to catch up. Other altcoins and meme coins have surged, but DOGE remains in consolidation.
Related Reading
Analysts and investors are closely watching for a signal that could confirm a further uptrend for Dogecoin. The funding rate indicates rising demand, which could support a potential price increase. Top analyst and investor Ali has shared an intriguing buy signal for DOGE, suggesting that gains may be on the horizon.
As the market sentiment shifts, traders closely monitor whether Dogecoin will follow the broader crypto trend and break out of its current range in the coming days.
Dogecoin Price Is Set To Rise
Dogecoin is currently at a crucial level that will determine its price action, as DOGE has struggled to hold above this area since early August. Speculation around DOGE’s performance in the coming months is optimistic, yet Dogecoin must catch up with the gains other meme coins deliver to investors.
Prominent analyst Ali has shared a technical chart on X, showing a buy signal for Dogecoin on the 4-hour price chart. This signal is significant because it appears in a shorter timeframe and often indicates a larger trend shift in the daily timeframe, suggesting a potential upside in the coming days. If this signal plays out, it could begin a stronger upward movement for DOGE.
Supporting this optimistic outlook, key data from Coinglass reveals that the OI-weighted funding rate for Dogecoin is rising. A positive funding rate in cryptocurrency markets indicates that the price of perpetual futures contracts is higher than the spot price of the underlying asset.
This means long positions are becoming more dominant, and long traders pay short traders a positive funding rate. This dynamic reflects increased demand for DOGE and hints at potential gains ahead.
Related Reading
If Dogecoin can maintain strength above this critical level, it may finally follow the broader market’s uptrend. However, Dogecoin risks further consolidation or a potential drop if it fails to break above and sustain higher levels. For now, investors are watching closely, waiting for a confirmed move that could lead to significant gains for DOGE.
DOGE Testing Supply: Breakout Soon?
Dogecoin (DOGE) currently trades at $0.112 after several days of sideways trading below the daily 200 exponential moving average (EMA), which sits at $0.116. This level has acted as a key resistance, and breaking above DOGE must gain momentum.
If the price manages to recover the 1D 200 EMA and push past the $0.13 mark, it could signal the start of a significant rally for Dogecoin. Such a move would likely reignite investor interest and attract new buying demand, potentially driving higher prices.
However, if Dogecoin fails to hold above the $0.11 level and continues to struggle with the 1D 200 EMA, a deeper correction could be on the horizon. In that scenario, DOGE may retrace to lower demand areas around $0.09, where buyers might step in to prevent further downside.
Related Reading
For now, Dogecoin’s price action remains in a tight range, and traders are watching closely to see if it can reclaim these critical levels or if a larger pullback is in store. The next few days will be essential in determining the future direction of DOGE’s price.
Featured image from Dall-E, chart from TradingView
