Dogecoin Still In Consolidation – Analyst Expects $0,63 If We Get A Breakout

Source Newsbtc

Dogecoin (DOGE) has been stuck in a range for nearly a month, struggling to break above the $0.44 resistance level. Despite multiple attempts, the price has yet to reclaim the $0.48 local high set in November. This prolonged consolidation has kept traders and investors on edge as they await a decisive breakout to signal the next major move for the popular meme coin.

Top investor Carl Runefelt recently shared his technical analysis on X, highlighting that DOGE is still trading within a bullish pattern. He says this consolidation phase is part of a broader setup that could lead to significant gains. Runefelt remains optimistic, stating that once Dogecoin breaks out of its current range, it could initiate a rally to new highs.

Dogecoin’s price action is closely tied to broader market dynamics, especially Bitcoin’s performance, which recently surged above $100,000. As altcoins often follow Bitcoin’s lead, many speculate that DOGE could be on the verge of a major breakout.

However, until DOGE surpasses key resistance levels, the market remains cautious. The coming days will be crucial in determining whether Dogecoin can break free from its range and resume its upward trajectory.

Dogecoin Still In Consolidation 

Since November 12, Dogecoin has remained in a consolidation range, leaving traders uncertain about its next major move. Despite an impressive rally earlier this cycle, culminating in a local high of $0.48 on November 23, the meme coin has struggled to break above this level. Instead, it continues to trade sideways, testing the patience of investors and analysts alike.

Top analyst Carl Runefelt recently shared a technical analysis on X, highlighting the formation of a bullish pattern within Dogecoin’s price action. According to Runefelt, DOGE’s extended consolidation could be a precursor to an explosive breakout.

Dogecoin still consolidating within the pattern

He notes that if DOGE breaks out of its current range, it could target as high as $0.6350. However, he also cautions that this scenario could take time to materialize, as Dogecoin has historically required significant patience from its investors during similar consolidation phases.

While the current price action may appear indecisive, DOGE has proven in the past that its breakouts are often aggressive and substantial once they occur. With Bitcoin leading the market above the $100K level, altcoins like DOGE are expected to follow suit eventually. All eyes remain on key resistance levels as traders await confirmation of Dogecoin’s next move.

DOGE Struggles To Break Key Levels 

Dogecoin trades at $0.423, reflecting weeks of peculiar and sluggish price action. Despite its impressive performance earlier in the month, with a 220% surge since November 5, DOGE now appears to be in a cooling-off phase. The price has repeatedly tested the $0.44 level but has failed to achieve a daily close above it, leaving traders and analysts watching closely for a potential breakout.

DOGE testing last supply level before new highs

A daily close above $0.44 would likely trigger a significant rally, as this level is a key resistance and psychological barrier for the market. However, such a breakout may require time, given Dogecoin’s massive run earlier in the month. Markets often consolidate after such explosive moves, allowing for profit-taking and the absorption of sell pressure before the next leg higher.

Despite the slow pace, DOGE’s long-term momentum remains promising. Investors are eyeing its potential to reclaim bullish energy and push toward higher levels. Until then, patience is key as Dogecoin builds the foundation for its next significant move. The $0.44 level remains critical, serving as a signal of renewed strength if DOGE can finally break through and establish it as support.

Featured image from Dall-E, chart from TradingView

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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