- Dogecoin price breaks out of a symmetrical triangle consolidation due to buying pressure.
- The breakout was followed by Elon Musk's "Doge" tweet.
- Transaction history shows a large buyer concentration at $0.045 supporting the upswing.
Dogecoin price shows signs of life after retracing almost 75% from a record high of $0.088 fueled by the so-called Reddit Rebellion. As all eyes turned from the stock market drama to DOGE, the prices skyrocketed a whopping 800% in a few hours.
Dogecoin price heads to greener pastures
At the time of writing, DOGE seems to be resurrected from the dead due to Elon Musk's tweet. The meme token has already hit its target at $0.055 after surging by 82% following the breakout from a symmetrical triangle. If the buying pressure continues, Dogecoin price could slice through the next critical resistance level at $0.058.
DOGE/USDT 1-hour chart
The IOMAP model by IntoTheBlock reveals subtle resistance up to the $0.057 level and can be overcome if the buy orders continue to pile up. However, a crucial supply barrier lies at $0.058 that could seriously hinder Dogecoin's rally.
Here, roughly 6,000 addresses had formerly bought nearly 675 million DOGE. Breaking above this zone could catapult the altcoin to retest its recent all-time high of $0.088 or even jump start a new rally to record highs.
Moreover, any short-term selling pressure is expected to be cushioned by the support level at $0.052. Here, 478 addresses previously purchased 572 million DOGE. Hence, if the price heads any lower, holders around this price range may buy tokens to keep their investment ‘In the Money.’
Dogecoin IOMAP chart
It is essential to realize that the resistance around the $0.058 level could continue to subdue the price as many investors who purchased Dogecoin here are ‘Out of the Money.’ Therefore, if the selling pressure intensifies and DOGE fails to hold above the support at $0.051, a downswing could occur, forcing the coin to revisit the next immediate support barrier at $0.050.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.