Following its massive rally above the $0.3 mark, the Dogecoin price has been struggling to break past the $0.4 resistance for weeks. A crypto analyst has revealed what could happen if Dogecoin fails to clear this crucial resistance, highlighting bearish scenarios and new price lows for the meme coin.
The Dogecoin Price If It Fails To Stay above $0.4
The Dogecoin price has been stuck in a consolidation phase after experiencing double-digit gains this month. Earlier in November, Dogecoin rose from around $0.2 to over $0.4, driven by increased demand fueled by the post-election bullish sentiment.
While many expected Dogecoin to easily surpass the $0.4 price mark and reach new all-time highs, the popular meme coin has unfortunately been stuck in this crucial area, often testing this resistance to attempt a breakout. Given its current struggle around this level, crypto analyst Ali Martinez has revealed in an X (formerly Twitter) post the bearish scenario that could follow if Dogecoin fails to clear the above-mentioned resistance.
Martinez disclosed that the $0.4 mark was a critical threshold for Dogecoin, which could lead to its next price rally or crash. The analyst noted that a sustained break above this crucial level would send the Dogecoin price to $0.43, providing more room and fewer barriers for a potential rally.
On the other hand, if Dogecoin fails to clear the $0.4 resistance level, Martinez has predicted that this could trigger a significant price dip to the $0.36 mark. The analyst emphasized that Dogecoin could even see its price plummeting to $0.34, marking new lows.
In November, Dogecoin rallied as high as $0.48, marking impressive gains in this bull cycle. While its price has corrected over the past few weeks, many analysts, including Martinez, remain optimistic about the meme coin’s bullish potential. The analyst previously projected a massive 120% increase to $0.82 for Dogecoin this cycle.
Analyst Says $1 Surge Is Coming
The Dogecoin price is currently trading at $0.4, marking a 3.33% increase in the last 24 hours. As the meme coin continues to retest this crucial resistance level, a crypto analyst, Ash Crypto, has projected that Dogecoin is gearing up for a massive pump in this cycle.
The analyst shared a chart showing Dogecoin’s price at $0.47, underscoring that the meme coin is steadily closing in on the $0.5 mark. Based on its current bullish price movements, Ash Crypto predicts that Dogecoin could reach the $1 milestone soon.
On the other hand, crypto analyst DonAlt has maintained a more bearish position for the Dogecoin price. He revealed that the Dogecoin chart is “clearly” showing bearish action, suggesting that buying in now could be at a disadvantage. He also indicated that Dogecoin must reclaim the $0.4 mark on a closing basis before it can see any substantial growth.
Featured image created with Dall.E, chart from Tradingview.com
