Dogecoin Hits Critical Resistance: Will It Surge Past $0.40 or Face a Price Dip?

Despite Dogecoin (DOGE) still being 45% below its all-time high of $0.7316, achieved in 2021, DOGE has experienced a notable year-to-date gain of over 400%.

When writing, the memecoin leader trades at $0.404, up 5.6% in the past 24 hours. Analysts suggest this price marks a critical juncture that could significantly influence Dogecoin’s trajectory in the coming days.

Dogecoin Hit Key Resistance Point

The recent rally has garnered significant attention from analysts. Renowned crypto analyst Ali recently shared his technical cryptocurrency analysis via his X account.

In the post, the analyst marked out a descending channel on DOGE’s price chart. According to Ali, Dogecoin is currently testing a critical resistance level. He stated that a “sustained” break above the $0.40 price mark could increase the price to $0.43 levels.

However, should DOGE fail to breach the $0.40 level, the asset is prone to face another notable dip that would drop its price to $0.36 or even $0.34.

#Dogecoin $DOGE is at a very critical resistance point. A sustained break above $0.40 will send it to $0.43, but failing to clear the $0.40 resistance will trigger another dip to $0.36 or even $0.34! pic.twitter.com/fTqpftq3tS

— Ali (@ali_charts) November 27, 2024

Key Developments Strengthen DOGE’s Bullish Position

Beyond its price movements, Dogecoin has recently benefited from several positive developments that have reinforced investor confidence.

One notable instance is the establishment of a new government agency named the Department of Government Efficiency (DOGE) in the United States. This acronym is the same as the ticker for Dogecoin.

Additionally, crypto fund issuer Valour has introduced an exchange-traded product (ETP) for Dogecoin. A press release uploaded earlier today read:

DeFi Technologies’ subsidiary Valour Inc. has introduced the Valour Dogecoin (DOGE) ETP on Sweden’s Spotlight Stock Market, marking the first Dogecoin ETP available in the Nordics. This launch expands Valour’s suite of digital asset products, offering investors exposure to Dogecoin, which currently holds a market capitalization of approximately $59.5 billion, ranking it as the 7th largest digital asset globally.

Notably, these milestones highlights the increasing institutional and mainstream recognition of DOGE, contributing to its ongoing price rally.

In addition to Ali’s technical insights, another analyst, Trader Tardigrade, shared a long-term perspective on Dogecoin. The analyst pointed out that DOGE maintains a recognizable wave pattern on its macro chart, predicting a potential blow-off top that could see the cryptocurrency reaching as high as $20.

# Dogecoin maintains a wave pattern on the macro chart Next blow-off top predicted at $20 pic.twitter.com/8U9DvuBLCm

— Trader Tardigrade (@TATrader_Alan) November 27, 2024

Featured image created with DALL-E, Chart from tradingview