At $0.34, Dogecoin is currently testing the 26 EMA resistance level which poses a serious challenge. Since DOGE’s ability to break through this level will determine its next course of action, this technical level has turned out to be a crucial one. Three scenarios regarding this resistance level are examined here along with their implications for Dogecoin’s price action.
Scenario 1: Successful Breakout. Dogecoin could generate a fresh wave of bullish momentum if it is able to convincingly break above the 26 EMA. If a breakout occurs here, it would mean that the asset is breaking short-term resistance and could rally to the $0.40-$0.42 range. This would put Dogecoin back on track to reach its previous highs supported by higher trading volumes and regaining investor confidence.
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DOGE/USDT chart by TradingView
Scenario 2: Rejection at Resistance. If Dogecoin fails to break above the 26 EMA, it could retrace its steps and end up at the next support level, which is around $0.30. With buyers and sellers fighting for control, this is likely to herald a period of consolidation. This situation could postpone any significant upward movement until DOGE gains enough momentum to make another attempt, although it is not necessarily bearish.
Scenario 3: Continued consolidation. There is a third chance that Dogecoin will remain within the 26-period EMA without a clear breakout or rejection. This suggests that traders are waiting for more significant signals, which indicates hesitation in the market. This situation creates a solid foundation for a stronger move in either direction, although it may prolong the current stagnation. Potential for an upside: If Dogecoin breaks above the 26-period EMA, the upside wave may intensify, supported by general market optimism and Dogecoin’s community-based style. Institutions may also become interested in this scenario, which could accelerate its rise. The turning point is reflected in Dogecoin’s current stance. The market is waiting for a clear move as it remains close to a critical resistance level. Dogecoin’s trajectory in early 2025 is likely to be shaped by the upcoming trading sessions regardless of whether it breaks or consolidates. #دوجكوين
