Dogecoin Faces Short-Term Correction After Rally

Following a significant surge over the past five weeks, Dogecoin ($DOGE) has faced a short-term correction after encountering resistance at around 43 cents. The meme coin, with a valuation of approximately $54 billion and a daily trading volume of $15.3 billion, has formed a potential reversal pattern in its four-hour chart.

Technical Analysis

Rejection from the 43-cent resistance level twice in recent days has led to a double top formation, accompanied by a bearish divergence on the Relative Strength Index (RSI).

Bullish Sentiment

Despite the correction, Dogecoin's long-term outlook remains bullish. The macro trend indicates a potential entry into the bull market cycle of 2024/2025, with the coin forming higher highs and higher lows in the weekly timeframe since October 2023.

Support and Resistance

In the shorter timeframes, Dogecoin has established support above 35 cents, providing a potential launchpad for a rally towards 90 cents. However, if the 35-cent support is breached, the price may find support between 30 and 26 cents.

Whale Activity

The Dogecoin network has attracted significant investor interest, with over 5.3 million on-chain holders. Elon Musk's continued support has contributed to the meme coin's popularity among whale investors.

According to Santiment, Dogecoin whales have purchased 140 million DOGE units, valued at over $56 million, in the past 24 hours, indicating their confidence in the asset's long-term potential.