Will Dogecoin Break $0.29 Resistance to Target a $0.42 Rally?

Dogecoin consolidates near $0.27 with support at $0.24–$0.25

Dogecoin is trading at a current price of $0.2751 having fallen by 6.75% over the past few sessions. It has a market capitalization of $41.91 billion. The volume of trading was also down by 13.14% to $6.89 billion indicating lower market involvement in the process of consolidation.

DOGE has taken a support of between $0.24 and $0.25. This level of support has drawn upon the buyers on a number of occasions and the price has stabilized around the current levels. It has also been noted that analysts are giving deeper support at around $0.22 to $0.21 in case the bottom band is broken.

Source TradingView

Dogecoin rose 1.23% in 24 hours to reach the high of $0.2711. Such a small recovery indicated that traders were still working around support levels despite a weaker trend in volume.

$0.29 resistance defines the short-term range for Dogecoin

The upward momentum has ended at the resistance of the zone between $0.27 and $0.29 considering that Dogecoin has been unable to maintain an upward momentum higher than this level. This is a high-density supply area where a selling pressure has always appeared in previous trading periods.

The clusters of the long-term holder activity have been observed between $0.22 and $0.35. Important levels were observed at $0.229 and $0.354, and the analysts may be alerted to invoke profit taking when the price moves through such levels. These regions are still significant with regard to short-term mobility.

The traders opined that a breakout over $0.29 would open a ladder to a rally of $0.42. This possible shift is 61% upsurge over current volumes assuming that the volume and purchasing pressure coincide with whale acquisition.

Whale activity influences Dogecoin’s trading structure

Big holders or commonly known as whales, have been engaging in recent sessions. It is reported that 680 million DOGE were already accrued in 96 hours and there is high interest in buying the stock among the major investors.

This build-up is an indication that huge wallets are leading a potential breakout initiative. According to the market observers, whale trading has the ability to generate liquidity changes affecting short-term momentum, and the direction of the trend.

Source CoinMarketCap

Nonetheless, the area around the $0.30 resistance is solid. This is one of the levels already rebuffed in recent attempts by Dogecoin, and traders are once again monitoring the ability of whale demand to facilitate another move upwards.

Dogecoin trading structure defined by $0.23 support and $0.29 resistance

Dogecoin is still trading in a tight range, with support being at the range of $0.23 and resistance being fixed at the range of $0.29.

Price has been oscillating between these levels over many sessions, as an indication of a balance between the buyers and the sellers in the market.

According to market analysts, the trading volume patterns will be very critical in the next few weeks. An increase in activity would lead to a breakout of the current consolidation.

The large accumulation by the large holders has also increased anticipation of a potential upward movement.

In case the buyers will protect the level of $0.23, the other resistance test will be at $0.29. A close above this level can enable DOGE to attack the zone of $0.42. But the inability to retain at $0.23 may subject the price to further support at the lower levels of $0.22 and $0.21.