After a strong rally over the past five weeks, Dogecoin ($DOGE) is now experiencing a short-term correction, following a test of a key resistance level around 43 cents. The leading meme coin, with a fully diluted valuation of about $54 billion and daily trading volume of around $15.3 billion, is showing signs of a possible reversal pattern on the four-hour chart.
Dogecoin’s price has been rejected twice at the 43-cent resistance level in recent days. This has formed a potential double top pattern, which, along with a bearish divergence on the Relative Strength Index (RSI), suggests that the price might face further decline in the short term.
Bullish Outlook for Dogecoin: A Look at the Bigger Picture
Looking at the bigger picture, Dogecoin’s price is on track to enter an exciting phase of the 2024/2025 bull market cycle. Since October last year, it has been consistently forming higher highs and higher lows on the weekly timeframe, showing strong bullish momentum.
On the shorter time frames, Dogecoin has established support above 35 cents, which could serve as a foundation for a rally toward 90 cents. However, if this support level breaks, the price might find stronger support between 30 cents and 26 cents.
Curious about Dogecoin’s future? Get the inside scoop with our latest Dogecoin price prediction and stay ahead of the game!
Whale Investors on the Hunt
The Dogecoin network continues to attract investors globally, with over 5.3 million on-chain holders as of this report. Elon Musk’s ongoing support, including his involvement in the D.O.G.E program to improve U.S. government efficiency, has helped draw in more whale investors.
Recent on-chain data from Santiment shows that Dogecoin whales purchased a massive 140 million DOGE units—worth over $56 million—within the past 24 hours, indicating strong market interest.
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Whatever happens next, Dogecoin’s story is one to watch closely.
