Can Dogecoin break free after holding $0.10 for the third time?

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  • Dogecoin has surged past the critical $0.10 support, buoyed by renewed market confidence. 
  • However, sustaining a bullish rally requires a strategy.

As a seasoned analyst with years of market experience under my belt, I find myself cautiously optimistic about Dogecoin’s recent surge above the critical $0.10 support. The renewed market confidence is indeed a positive sign, but sustaining this bullish rally requires a well-thought-out strategy.

Dogecoin [DOGE] has surged 2% in the last 24 hours, buoyed by Bitcoin’s rise above $61K.

At present, Dogecoin is valued at approximately $0.10377. For the third time since late August, it has managed to maintain its position above the $0.10 support level. Previously, efforts to surpass this point encountered significant resistance – will this time be different and could Dogecoin succeed in reversing the current trend?

Understanding the significance of $0.10 is crucial

Source : TradingView

For about a month now, Dogecoin has been holding steady on its daily chart. Following a surge in late July that pushed it to around $0.14, its trend has turned more downward.

To correct the price, Dogecoin needs to surpass the resistance level at $0.11, but this can happen effectively if it maintains its support at $0.10.

Since the Federal Reserve announced a rate cut, there’s been an increase in market optimism which in turn has propelled significant growth in major cryptocurrencies.

As per AMBCrypto, maintaining this pace is essential; otherwise, should it turn out to be a fleeting spike, a substantial correction might pull DOGE down to approximately $0.08 again.

The chart below emphasizes the importance of this particular support level. Should bulls step back, approximately a million token holders with around 12 billion tokens stand to incur potential losses. This increases the likelihood of a price drop if these holders try to recover their investments.

Instead, if the push becomes more powerful, approximately 391,000 investors could find themselves in a profitable position. The fear of missing out (FOMO) might also persuade these investors to hold their positions for an extended period.

Source : IntoTheBlock

As an analyst, I find myself observing that Dogecoin is standing at a pivotal moment. To revisit its past peak of $0.14, it’s essential that several factors fall into place.

If there’s continued high confidence among stakeholders, it seems likely that we could soon witness a return to those optimistic levels. In other words, the situation appears to be tilting in favor of those who are confident.

Dogecoin bulls need to strategize for a breakout

In the world of meme coins, continuous growth over time can be hindered when speculative traders, or day-traders, sell their holdings following every market high point.

Previously, when Dogecoin finished trading at $0.11, there was a significant increase in the number of tokens being moved to exchanges. This influx led to a 2% decrease in value the next day.

This pattern repeats whenever DOGE approaches a market top, with high inflows acting as resistance.

Source : IntoTheBlock

Read Dogecoin’s [DOGE] Price Prediction 2024–2025

Consequently, if DOGE is to surpass its resistance levels, buyers need to counteract the selling force and retain a positive outlook over the long term by continuing to hold onto their Dogecoins.

Essentially, although dogecoin (DOGE) remains above its $0.10 support due to market enthusiasm, AMBCrypto suggests that for DOGE to reach its $0.14 peak again, it would need a strong effort by the bulls to initiate a breakthrough.

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2024-09-19 21:44