With bullish sentiment gradually returning to the broader crypto market, Dogecoin, the largest dog-themed meme coin, has recovered briefly from recent bearish pressure. As upside momentum builds, many crypto analysts are predicting a potential rally for DOGE, suggesting that the bearish performance will soon come to an end.
Two Levels Standing In The Way Of Dogecoin’s Rally
Dogecoin is showing multiple signs of upward movement supported by steady bullish sentiment in the crypto market. Delving into Dogecoin’s recent price action, Ali Martinez, a seasoned crypto expert and trader, has revealed a key moment that could significantly alter DOGE’s price dynamics in the upcoming days.
Ali Martinez’s analysis indicates that Dogecoin is eyeing a potential uptrend, but it needs to surpass two crucial resistance levels before initiating a rally. These levels could serve as a launchpad for the meme coin’s price recovery after enduring a prolonged consolidation phase.
According to the expert, DOGE has encountered two key resistance walls at the $0.18 and $0.21 price marks. At these points, a significant supply of DOGE was bought, reflecting the importance of these levels. With momentum building, breaking past these thresholds might be the catalyst for the next substantial bull rally for the dog-themed meme coin, propelling it toward higher price targets in the short term.
The expert cited these two key resistance walls after examining the DOGE UTXO Realizex Price Distribution (URPD), a crucial metric that determines the amount of supply purchased at different price levels. Looking at the chart, Dogecoin’s largest supply was accumulated at the $0.07 range, where investors bought more than 20% of the meme coin.
Furthermore, the second and third-largest supply walls are located at $0.17 and $0.20, respectively. During these levels, investors purchased about 7.97% and 7.04% of DOGE’s total supply, respectively. As the meme coin currently trades below these two zones, it implies that all coins acquired at these levels are at a loss.
However, this scenario could change as DOGE prepares for a persistent upswing. Crypto analyst and investor Trader Tardigrade has predicted a potential move toward the upside. His forecast stems from Dogecoin’s recent breakout from a descending trendline, which signals an uptrend continuation.
DOGE’s Next Major Move In Sight?
In another X post, Trader Tardigrade also outlined promising developments in DOGE’s price that hint at a significant rally. Specifically, the expert revealed that the meme coin has formed a crucial J-shaped pattern in the monthly time frame chart.
The last time this pattern emerged during the 2017 bull market cycle after substantial accumulation, Dogecoin experienced massive upswings to new highs. Meanwhile, after reaching its all-time high in 2021, notable accumulation has transpired, and prices have retraced, leading to the current J-shaped pattern. As a result, the expert believes that a significant rebound is imminent, anticipating a similar rally that could reach a new all-time high of $5.
