DOGE Price Explosion? Analysts Say Breaking These Levels Could Spark a Bull Run!

Dogecoin (DOGE) has historically been a fan favorite in the crypto space, and it’s back in the limelight as it grapples with important resistance levels. Recent on-chain data indicates that pushing through these levels could lead to a bull run. Analysts highlighted two price levels that need to be broken for the Doge price rally.

Why These Resistance Levels Matter

In cryptocurrency, price points that have more trading activity tend to get treated as obstacle levels. This occurs because many investors feel the market is at break even or profitability at that level and will attempt to sell. This is precisely what is going on with Doge at the present moment. 

According to analyst Ali Martinez, using the UTXO Realized Price Distribution (URPD) metric, an enormous percentage of total DOGE supply, almost 8%, was last traded at $0.18 (or, the last holders purchased for), and about 7% of it was purchased at $0.21. Therefore, these are the key levels, and if DOGE can push through these price point levels, there will be a strong indication that could lead to Doge price rally.

Here’s the chart from the analyst illustrating the current Dogecoin URPD distribution:

Breaking These Levels Could Change the Game

At the moment, Dogecoin is trading at approximately $0.17, which means we are close to testing that first major resistance at $0.18. If it does, the $0.21 area will be the next level to tackle. Once we get past these two resistance levels, there aren’t many resistance areas left to slow DOGE down, allowing it to potentially run much higher. 

To be fair, Dogecoin has always been very reactive due to hype and external factors, and we all remember when Elon Musk’s tweets were causing DOGE to rally on a whim. If something like that were to happen once DOGE breaks resistance levels, it would be exciting to see DOGE price rally. 

The Bigger Picture: DOGE Market Trends & External Factors

Indeed, the outcome for Dogecoin is not solely about breaking resistances and is affected by the tactility of the cryptocurrency market as a whole. Should Bitcoin and other top cryptocurrencies continue to gain momentum, Dogecoin will likely follow. In addition, macroeconomic circumstances, including interest rates and inflation, can impact the mood of investors across the cryptocurrency space. Of course, social media hype plays a huge role in the DOGE market trend and price action. Should the enthusiasm build around this memecoin, that energy could help push DOGE past the price barriers mentioned above.

DOGE Price Prediction: What’s Next for Dogecoin?

At the moment, all focus is on the levels of $0.18 and $0.21. If Dogecoin breaks through both levels, it could be the start of a Doge price rally. If it fails to breach these levels, we could see some sideways activity or short-term pullbacks.

When looking at DOGE price predictions, analysts suggest that if DOGE can break $0.21 with strong momentum, the next major resistance for the price to clear could be located in the zone of $0.25 to $0.28. If the Doge price rally continues to hold above these levels, it may enable Dogecoin to advance towards the psychologically significant level of $0.30 in the future, and hopefully begin a longer-term uptrend. Conversely, if Doge does not break through these anticipated resistance levels, we may see a retest of support for the price to drop as low as $0.15, or even lower, depending on the market conditions.

For traders and investors, this is an important time in the crypto settlement and the market overall. The next wave of weeks could determine whether DOGE prices move into another explosive rally or continue in a consolidation phase as it has been thus far. That being said, DOGE is back at an inflection point, and what happens next could be truly disruptive to the market!