Dogecoin price has stalled after hitting a crucial resistance level on Wednesday as cryptocurrencies staged a strong recovery. It has trailed other popular cryptocurrencies like Stellar and Ripple. Also, there are signs that it is about to form a double-top pattern as some crypto investors start buying Fartcoin instead.
Dogecoin Price Technicals Point To A Reversal
Dogecoin, the biggest meme coin in the crypto industry, has found substantial resistance after soaring by almost 10% on Wednesday. On the daily chart, the coin may be about to form a double-top pattern at $0.40, its highest swing on January 5. The neckline of this pattern is at $0.3107.
A double-top pattern is one of the most accurate bearish reversal chart patterns in technical analysis. That could be a sign that DOGE price will soon have a harsh reversal as the recent bullish momentum fades.
Therefore, if the double-top chart pattern works well, Dogecoin will initially fall to the neckline at $0.3107 and then move to the next crucial support level at $0.2637, its lowest level in December.
However, a strong bullish breakout to $0.40 will invalidate the bearish view and point to more gains, possibly to its 2024 high of $0.4837. Such a move would indicate a 26% jump from the current level, potentially as the value of DOGE cheers an ETF approval.
Traders Are Moving To Fartcoin
One potential reason why Dogecoin price is struggling is that many investors have shifted to newer Solana meme coins. Fartcoin has been one of the best-performing tokens in the market since December last year.
It has soared by over 6,000% from the lowest level in November last year, making it one of main leaders. This rally has pushed its market cap to over $1.2 billion.
One reason for the rally is that many crypto experts have been accumulating it. As shown below, there have been six buy transactions worth over $1 million in the last seven days.
The four-hour chart shows that the Fartcoin token price has staged a strong recovery in the past few days after bottoming at $0.6800 last week. This was an important level since it coincided with the ascending trendline that connects the lowest level since December 5.
It is now attempting to cross the important resistance level at $1.2966, its highest swing on December 20 and 25. A successful break above that level will point to more gains, potentially to the all-time high of $1.6108 followed by the psychological point at $2. A drop below $1 will invalidate the bullish view.
Frequently Asked Questions (FAQs)
DOGE price is struggling as crypto investors rotate to newer meme coins like Pudgy Penguins and Fartcoin.
DOGE price is forming a double-top pattern, pointing to a potential bearish breakout in the near term. If this happens, it could drop to its December lows.
The short-term outlook for Fartcoin is bullish, with the initial target being at $1.6110. However, its long-term viability is still uncertain since it is a fairly new project.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/dogecoin-price-stalls-as-crypto-pros-abandon-doge-for-this-altcoin/
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