Dogecoin is testing a critical liquidity area around $0.112 after a period of choppy price action. Though the broader crypto market, led by Bitcoin, is rising, Dogecoin has remained in consolidation. Other altcoins and meme coins have surged, prompting analysts and investors to watch for signals of an uptrend for Dogecoin.
The funding rate for Dogecoin indicates rising demand, supporting potential price increases. Top analyst and investor Ali noted a buy signal on a 4-hour chart, hinting at a possible upward trend in the coming days. This signal may lead to Dogecoin breaking out of its current range.
Currently, Dogecoin struggles to maintain levels above $0.112, a critical point since early August. Speculation regarding Dogecoin's performance remains optimistic, with hopes of catching up with gains made by other meme coins. The analyst shared a buy signal, suggesting a potential upside soon.
Data from Coinglass supports this optimistic outlook, reflecting increased demand for Dogecoin. A positive funding rate in cryptocurrency markets suggests higher prices for perpetual futures contracts, indicating dominance of long positions over short ones, hinting at potential gains.
If Dogecoin can maintain strength above this critical level, it could join the broader market's uptrend. However, a failure to sustain higher levels could risk further consolidation or a potential drop in price.
Dogecoin currently trades at $0.112, below the daily 200 EMA at $0.116. Breaking above this could signal a rally, attracting investor interest and driving prices higher. A failure to hold might result in a decline to lower demand areas, possibly around $0.09.
For now, Dogecoin's price action remains in a tight range, and traders closely watch to see if it can reclaim key levels or face a larger pullback. The upcoming days are crucial for determining DOGE's future direction.
