• Dogecoin’s price has been on a rising trajectory since Elon Musk acquired Twitter Inc. late last year.
• Market analysts believe the meme lord could rally beyond its October highs of about $0.159 soon.
• According to several crypto analysts, the next probable trend in Dogecoin is a multi-week consolidation before the next bull market takes place.
Dogecoin has been on a meteoric rise since tech mogul Elon Musk acquired Twitter Inc. for $44 billion late last year. As the meme lord’s price continues to ascend, market analysts have been speculating about the legitimacy of the trend change, and where exactly the Dogecoin price is heading.
At present, the Dogecoin price has formed a falling wedge, which usually signals that the trend will resume later on. The 200W MA has also supported the price in the past two days, and the Dogecoin price has already broken out of the multi-week falling trend and is now retesting the trend line as a support level. However, the narrative could be invalidated should the Dogecoin price fall below the trend line support, which would then act as a resistance level once again.
As of writing this article, Dogecoin is trading at around $0.084497 and boasts a market capitalization of approximately $11,649,383,387 and a 24-hour trading volume of about $526,969,058. Moreover, Dogecoin has recorded total liquidation of approximately $1.61 million in the past 24 hours according to aggregate data provided by Coinglass.
Crypto analysts are also predicting that Dogecoin will experience a multi-week consolidation before the next bull market takes place. This is in line with the past two bear markets that Dogecoin has gone through, first between 2014-2017 and second between 2018-2020, both of which saw periods of consolidation.
Ultimately, it remains to be seen whether or not the current Dogecoin rally is a legitimate trend change or simply a bear trap. Only time will tell whether or not Dogecoin’s price is headed for a new all-time high or a sudden crash.