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The popular meme cryptocurrency Dogecoin (DOGE) faces a new stress test in its growth trajectory. Whether the memecoin can reach a new price level depends on whether it can pass through the current resistance level.
what is happening with dogecoin
The numbers on the Dogecoin network are mostly bullish. However, they are at a tipping point and the balance could soon tip towards the point where prices may start to consolidate.
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DOGE has risen 1.5% in the past 24 hours and is at $0.1089 at the time of writing. This latest bullish number comes as DOGE trimmed its losses over the past week, increasing by 2%.
Despite this price increase, DOGE faces a significant stress test as trading volumes tell a different story. Within the past day, trading volume fell 30% to $539 million. This means that investors are less willing to trade this coin.
If the trading volume decreases, Dogecoin price may follow the same trend.
DOGE Whale activity increases
Still, DOGE remains a hot asset among large-scale investors, as consolidation dominates the majority of altcoins that will eventually see a recovery. According to a report by U.Today, the Dogecoin whale has accumulated over 2 billion DOGE in the past week. On-chain analyst Ali Martinez sees the surge in whale activity as a sign that DOGE is trying to create a bull market.
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Martinez emphasized that DOGE’s recent 65% decline suggests it may be gearing up for its next big rally. He said DOGE could initially rise 200% and then fall 60% before making a big rally. Martinez based his prediction on Dogecoin’s historical performance. The analyst believes DOGE is on track to repeat the bullish historical pattern of the past.
Also, whether Dogecoin can break through current resistance levels will depend on ecosystem development and broader market conditions. So only time will tell what the next big move for Dogecoin will be.
