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Dogecoin Price Enters Consolidation Phase, Eyes $1 as Next Target
Dogecoin, the largest meme coin by market capitalization, has entered a consolidation phase near its year-to-date high of $0.4795. Trading at around $0.4500 on December 5, the cryptocurrency has experienced a significant surge of 450% from its lowest level this year, pushing its market capitalization to over $65 billion.
Analysts Predict Bullish Breakout
Analysts are optimistic that the ongoing consolidation could be a precursor to a strong bullish breakout in the next few days. A likely catalyst for the DOGE price surge will be the ongoing Bitcoin rally, which has crossed the key resistance level of $100,000. This could attract more institutional investors and companies to buy the coin, leading to higher prices.
Greed in the Crypto Industry Drives Demand
The crypto fear and greed index has jumped to the extreme greed zone of 85, indicating a sense of urgency in the market. Additionally, the altcoin season index has continued to rise, which will likely spur more demand for Dogecoin. As a result, the price of DOGE may soar due to increased interest in low-priced meme coins.
Whale Accumulation Supports Price
Recent data shows that whales have continued to accumulate Dogecoin, with some whales moving coins worth over $3 million on December 5. This accumulation could provide further support to the price, potentially driving it higher.
Dogecoin Price Chart Analysis
The weekly chart shows that DOGE has already crossed the important resistance level at $0.2265, its highest level on March 25. The cryptocurrency has moved above the 50-week and 200-week moving averages and is approaching the 38.2% Fibonacci Retracement level.
However, the coin is forming a small rising wedge chart pattern, which could potentially lead to a drop and retest of the support at $0.40. If the bullish trend resumes, more gains could be confirmed if bulls move above the year-to-date high of $0.4795.
Potential Upside and Risks
If the bulls succeed in pushing the price above $0.4795, the coin may jump to an all-time high of $0.7363 by December 31, representing a 65% upside from the current level. Investors would then eye a move to the coveted $1 level in this bull run.
On the other hand, a move below the key support at $0.35 will invalidate the bullish view and put the price at risk of falling to $0.2265, the highest point in April this year.
As the crypto market continues to evolve, it’s essential to stay informed about the latest developments and trends. For more news and updates on the cryptocurrency market, visit Global Crypto News.
