Dogecoin Faces Resistance at $0.37 but Eyes a 200% Surge Toward $1.35
Highlights:
- Dogecoin encounters resistance at $0.37 but is forming a bullish pennant pattern.
- Pro-crypto changes in the U.S. government are driving the DOGE rally.
- A breakout could propel Dogecoin’s price to $1.35.
Dogecoin (DOGE) has risen 4.9% in the past 24 hours, trading at $0.372 as of November 18. Despite this growth, DOGE appears to have hit a resistance level, consolidating around the $0.37 mark as investors take profits. Could DOGE break through this barrier and achieve a 200% surge?
Dogecoin Price Stabilizes After Recent Rally
DOGE reached an intraday high of $0.3742 before dropping to $0.3501. Currently, the price has increased approximately 5%. Earlier this week, DOGE surged by over 10% after President-elect Donald Trump announced Elon Musk would head the newly proposed Department of Government Efficiency (D.O.G.E).
Although the hype around this announcement is settling, DOGE remains 259% higher than its value last month. The current price coincides with a historical resistance zone, where DOGE has struggled to move past on previous occasions. Such levels often serve as profit-taking targets for traders.
Could Dogecoin Rally 200% by Year-End?
Analysts suggest that DOGE’s rally may not be over. Candlestick patterns within the current consolidation phase indicate indecision, which often precedes a breakout. Declining trading volume in the triangle suggests reduced selling pressure, favoring a bullish move.
The Relative Strength Index (RSI) confirms overbought conditions, signaling the potential for continued upward momentum.
Dogecoin’s Path to $1.35
The sharp move from $0.14 to $0.44 is viewed as Wave 1 in Elliott Wave theory, while the current consolidation phase forms Wave 2. A confirmed breakout could mark the start of Wave 3, potentially driving DOGE 200% higher to $1.35.
Key Resistance Levels:
- $0.44 (recent high and 0% Fibonacci retracement).
- $0.51 (27% Fibonacci extension).
- $0.91 (161.8% Fibonacci extension).
Key Support Levels:
- $0.32 (38.2% Fibonacci retracement).
- $0.14 (long-term support).
What’s Fueling Dogecoin’s Momentum?
The creation of the Department of Government Efficiency (D.O.G.E) and other pro-crypto shifts in the U.S. government are providing strong momentum for Dogecoin. As President-elect Donald Trump’s inauguration approaches, DOGE is likely to experience further gains, driven by heightened investor optimism and favorable policy changes.
With a breakout imminent, Dogecoin is positioned to achieve significant growth, potentially reaching $1.35 in the coming months.
