On Wednesday, the biggest memecoin, Dogecoin reclaimed the $0.40 mark, rebounding 10% from its 20-day low of $0.36 seen on Tuesday. The surge comes amid an influx of new investors, as 60,000 wallets were added to the Dogecoin network between December 2 and December 11, signaling strong interest in the dip.
Dogecoin Indicates Strong Rebound Signal
The Volume Delta indicator shows an impressive increase in market liquidity, supporting this recovery phase. Overall, Dogecoin joins other cryptocurrencies like Bitcoin in a bullish turnaround after a challenging start to the week.
Today, Bitcoin has reclaimed its $100,000 mark thanks to institutional investments and Bitcoin ETFs. This market rebound coincides with traders responding positively to new consumer inflation data released by US regulators.
Despite the recent rebound, renowned analyst DonAlt warns that Dogecoin’s chart remains “destructive” marked by prolonged sideways consolidation between $0.38 and $0.48.
The pattern has led to the liquidation of numerous leveraged positions.
Key price levels for Dogecoin to watch include resistance at $0.48, which, if breached, could trigger upward momentum. On the other hand, the support level at $0.39 is crucial for stabilizing price, which provides a base for another potential rally.
However, the drop below the critical support level of $0.31 might start additional sell-offs, posing challenges for the current recovery phase.
While Dogecoin’s long-term rally to $1 is most awaited, the present consolidation phase provides opportunities for accumulation for patient investors. Breaking above $0.50 could be a gateway for testing prior highs, but the absence of strong catalysts may hinder rapid progress.
Also Read: Dogecoin Price Prediction 2024 – 2050
