Dogecoin is testing a critical liquidity area around $0.112 after experiencing days of choppy price action. While the broader cryptocurrency market, led by Bitcoin, has seen a notable rise from yearly lows fueled by positive economic data and improving sentiment, Dogecoin has yet to catch up. Other altcoins and meme coins have surged, but DOGE remains in consolidation.
Analysts and investors are closely observing for signs that could confirm a potential further uptrend for Dogecoin. The funding rate indicates rising demand, which could support a possible price increase. Notably, top analyst and investor Ali has shared an intriguing buy signal for DOGE, suggesting that gains may be on the horizon.
As market sentiment shifts, traders are monitoring whether Dogecoin will align with the broader crypto trend and break out of its current range in the coming days.
Dogecoin is currently at a critical level that will determine its price action, as it has struggled to hold above this range since early August. Speculation regarding DOGE’s performance in the coming months remains optimistic, yet Dogecoin must match the gains other meme coins deliver to investors.
Prominent analyst Ali has shared a technical chart on social media platform X, showcasing a buy signal for Dogecoin on the 4-hour price chart. This signal is significant because it appears within a shorter timeframe and often indicates a larger trend shift on the daily chart, suggesting a potential upside in the coming days. Should this signal play out, it could trigger a stronger upward movement for DOGE.
Supporting this optimistic outlook, key data from Coinglass shows that the OI-weighted funding rate for Dogecoin is rising. A positive funding rate in cryptocurrency markets suggests that the price of perpetual futures contracts exceeds the spot price of the underlying asset, indicating increased demand for long positions. This dynamic reflects heightened interest in DOGE and hints at potential gains ahead.
If Dogecoin can maintain strength above this critical level, it may finally follow the broader market’s uptrend. However, if it fails to break above and sustain higher levels, Dogecoin risks further consolidation or a potential decline. For now, investors are closely watching, hoping for a confirmed move that could lead to significant gains for DOGE.
Dogecoin is currently trading at $0.112 after several days of sideways trading below the daily 200 exponential moving average (EMA), which is at $0.116. This level has served as a key resistance point, and breaking above it is crucial for DOGE to gain momentum.
If the price manages to recover the 1D 200 EMA and push past the $0.13 mark, it could signal the beginning of a significant rally for Dogecoin. Such a move would likely reignite investor interest and attract new buying demand, potentially driving prices higher.
However, if Dogecoin fails to stay above the $0.11 level and continues to struggle with the 1D 200 EMA, a deeper correction may be imminent. In that case, DOGE might retrace to lower demand areas around $0.09, where buyers could step in to prevent further downside.
For now, Dogecoin’s price action remains in a tight range, and traders are watching closely to determine if it can reclaim these critical levels or if a larger pullback is in store. The next few days will be crucial in determining the future direction of DOGE’s price.