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Dogecoin (DOGE) Holders Could Wait Longer for 36% Increase

2 mins
Updated by Daria Krasnova
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In Brief

  • Dogecoin (DOGE) has traded in a narrow range since August, with resistance at $0.10 and support at $0.09.
  • Indicators show bullish momentum, but DOGE struggles to break above its resistance level, threatening a downtrend.
  • A rebound could lead to a 36% price increase toward $0.13, but bulls must defend key support at $0.09.
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Since August 4, the leading meme coin Dogecoin (DOGE) has traded within a narrow range.

While many traders have benefited from this range-bound movement, the prolonged sideways action could delay the anticipated 36% price surge toward the $0.13 resistance level. Here’s how.

Dogecoin Moves Sideways Despite Spike in Buying Pressure

Since August 4, Dogecoin has been trading within a horizontal channel, a pattern where the price moves between a defined range. The upper boundary of this channel forms resistance at $0.10, while the lower boundary provides support at $0.09.

Despite increased buying activity over the past six weeks, as shown by key indicators like the Chaikin Money Flow (CMF), which has maintained an uptrend since early September and stands at 0.16, signaling liquidity inflow into the market, DOGE has only broken above the $0.10 resistance twice.

dogecoin horizontal channel
Dogecoin Daily Analysis. Source: TradingView

Additionally, the Parabolic Stop and Reverse (SAR) indicator shows a bullish bias, with its dots positioned below the price, indicating a strong bullish trend. However, despite these signals of growing buying pressure, DOGE has yet to break through its resistance since August 23, and its price is currently trending toward the lower boundary of the channel.

Read more: How To Buy Dogecoin (DOGE) and Everything You Need To Know

dogecoin cmf and parabolic sar
Dogecoin Daily Analysis. Source: TradingView

DOGE Price Prediction: Why Bulls Must Defend Support

DOGE’s attempt to break below the lower boundary of its horizontal channel increases the risk of further price declines. If bulls fail to defend this support level, it could confirm a downtrend. In that case, DOGE’s price may drop further, potentially reaching the August 5 low of $0.08, 

Read more: Best Crypto Mining Games In 2024

doge price prediction
Dogecoin Daily Analysis. Source: TradingView

However, this bearish prediction might be invalidated if Dogecoin’s price witnesses a rebound. In that scenario, the meme coin’s price may rally by 36% toward resistance formed at $0.16.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Abiodun Oladokun
Abiodun Oladokun is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins. Previously, he conducted market analysis and technical assessments of various altcoins at AMBCrypto, utilizing on-chain analytics platforms like Messari, Santiment...
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