Dogecoin [DOGE] has surged 2% in the last 24 hours, buoyed by Bitcoin’s rise above $61K. Currently trading at $0.10377, DOGE has held the $0.10 support
Dogecoin [DOGE] has seen a 2% surge in the last 24 hours, riding high on Bitcoin’s [BTC] climb past the $61K mark.
Currently, trading at $0.10377, DOGE has held the $0.10 support for the third time since late August. Previous attempts have seen strong resistance- can Dogecoin break free and reverse the trend this time?
Understanding the significance of $0.10 is crucial
Source : TradingView
On the daily chart, Dogecoin has been consolidating for a month. After testing $0.14 during the late July rally, DOGE has trended bearish. A double-top formation was observed around this level.
Now, as the memecoin attempts to rally once again, strong resistance can be expected at $0.11. If this level is breached, DOGE could rally toward the next resistance zone at $0.12.
For a price correction, DOGE must break resistance at $0.11, which is feasible only if it holds support at $0.10.
Meanwhile, market optimism has surged following the Fed’s rate cut announcement, driving major coins upwards. DOGE has also seen a 10% surge in the last seven days.
According to AMBCrypto, sustaining this momentum is crucial, otherwise if it proves to be a temporary blip, a significant retracement could push DOGE back to $0.08.
The significance of this support level is underscored by the chart below. If bulls retreat, about 1 million holders with 12 billion tokens could face losses, increasing the risk of retracement if they aim to break even. Conversely, a stronger push could move around 391,000 holders into profit, with FOMO potentially keeping them invested for the long term.
Source : IntoTheBlock
Clearly, Dogecoin is at a crucial juncture. For the memecoin to approach its previous $0.14 high, other conditions must align.
If confidence remains high among stakeholders, a potential reversal toward that level might be imminent. So, what are the odds?
Dogecoin bulls need to strategize for a breakout
For a memecoin, long-term growth is often stifled by day-traders cashing out after each market peak.
This pattern is evident in DOGE’s price movements. For example, the last time Dogecoin closed at $0.11, a surge of tokens was deposited into exchanges, causing a 2% drop the following day.
This pattern repeats whenever DOGE approaches a market top, with high inflows acting as resistance.
Source : IntoTheBlock
Hence, for DOGE to push past resistance, bulls must absorb the selling pressure while maintaining long-term confidence by holding onto their coins.
In short, while current market optimism has kept DOGE above the $0.10 support, AMBCrypto notes that a sustained climb to the $0.14 high will require a significant push from the bulls to trigger a breakout.
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