As Dogecoin (DOGE) consolidates below a key area, some analysts suggest that the market’s recent bullish momentum and whale accumulation could push the memecoin’s price above a crucial resistan level soon.
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Dogecoin Big Price Move Faces Strong Resistance
On Tuesday, Dogecoin continued to move sideways between the $0.093-$0.096 price range after failing to break above a crucial resistance level. Amid last week’s market pump, the leading memecoin broke out of the $0.096 barrier for the first time in two weeks, briefly touching the $0.10-$0.102 resistance on Friday.
Market analyst Ali Martinez suggested that DOGE is preparing for a big price move, fueled by bullish momentum and whale accumulation. Notably, the memecoin recently saw one of its highest transaction volumes of the month and one of its highest volume spikes Year-to-Date (YTD), with over $800 million transacted on April 16.
In addition, large holders have accumulated over $330 million in Dogecoin over the past week, signaling key demand and confidence in the largest memecoin by market capitalization.
Nonetheless, Martinez also analyzed DOGE’s technical structure, noting that cryptocurrency has been consolidating within a horizontal channel since the late-January, early-February market crash.
Per the chart, the channel’s mid-range mark, around the $0.10 level, has been a strong resistance barrier over the past three months, with Dogecoin failing to reclaim it despite multiple attempts.
To the analyst, only a sustained close above $0.10 could push the memecoin toward the local range highs and open the door to a retest of the upper resistance at $0.12, a level untested since mid-February.
DOGE’s Macro Chart Eyes Parabolic Run
In a series of X posts, Market observer Trader Tardigrade stated that Dogecoin is “showing strong signs” that its downtrend is losing momentum, pointing out that selling pressure appears to be fading.
As he explained, DOGE has recently flashed Bullish Divergence two times, with the indicators refusing to go down despite the price continuing to print lower lows. “That’s a sign the selling force is fading and a shift from downtrend to uptrend could be around the corner,” the trader said.
He also shared a macro outlook, affirming that Dogecoin’s launchpad, the setup before a massive surge, is “in place.” According to the chart, this setup formed between 2016 and 2017 and led to a massive rally toward its 2018 all-time high (ATH) of $0.175.
“A breakout move toward the moon looks next. Momentum is building,” Trader Tardigrade suggested, adding that “a surge in volume could ignite the next leg higher.”
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Analyst Bitcoinsensus also shared a macro cycle outlook, stating that Dogecoin continues to trade within a large multi-cycle structure. The market watcher affirmed that the cryptocurrency’s current setup resembles DOGE’s previous macro consolidations.
The chart shows that after retracing from previous highs, the cryptocurrency recorded a long consolidation, followed by a parabolic run to new highs, with these breakouts leading to 60x and 215x gains.
“The broader formation keeps Cycle 3 in focus, while the market watches to see whether this phase develops like the earlier ones,” Bitcoinsensus stated.
Featured Image from Unsplash.com, Chart from TradingView.com
