Following the recent waning price performance of Dogecoin, the largest meme coin in the past few days, speculations and uncertainties about DOGE’s potential to hit a new all-time high in the short term have emerged within the crypto community.
Record-Breaking Run For Dogecoin May Be Postponed
Technical analyst and investor Master Kenobi has offered insights about Dogecoin’s short-term potential, noting that the dog-themed meme coin’s path to a new peak before the end of the year may not come to pass. The expert made the bold claims in a recent analysis on the X (formerly Twitter) platform, which has caused quite a frenzy in the DOGE community.
Citing a combination of market dynamics, macroeconomic conditions, and fading momentum, the analyst argues that DOGE’s price strength might not be sufficient to breach its current all-time high. This implies that the meme coin is set to enter a consolidation phase before resuming its ascent to historical highs in the following year.
According to the market expert, looking at the duration since the last Bitcoin Halving, the 40-day acceleration trend indicates that the red consolidation phase appeared one week earlier than anticipated. As a result, Master Kenobi believes a 1 to 3-week consolidation phase is likely at this period, which is good as it is already happening now.
Considering the development, Master Kenobi is less confident that a new all-time high for DOGE will occur by the end of the year. Rather, the meme coin might hit a new peak by the first half of January, suggesting a remarkable start for DOGE in the following year.
Furthermore, the expert noted that the much-anticipated Dogecoin rally will coincide with Donald Trump‘s return to the White House as the new president of the United States. This is due to the US elections, which caused forecasts to deviate by roughly 3 weeks from the normal cycle trend, making it a crucial scenario to consider.
Thus far, investors and traders are paying attention to DOGE’s current price action in order to reassess their positions, as the development could signal the start of a much larger upward trend for the meme coin.
A Brief Rally Incoming For DOGE?
With key indicators observed in the 2021 bull cycle, Daan Crypto Trades, another seasoned technical analyst,t foresees a break for DOGE to higher levels shortly, triggering optimism about its short-term potential. The daily chart reveals that Dogecoin has been stuck between two significant weekly levels since the 2021 bull run.
While 2021 key levels are resurfacing, the expert has pointed out that the $0.35 and $0.45 levels are the next critical targets to watch out for, noting that the big volume node has been providing good support for DOGE above $0.38. However, for the meme coin to initiate a rally it must test the $0.45 price mark.
Featured image from Unsplash, chart from Tradingview.com
