Will Dogecoin Set New All-time High?

The cryptocurrency market often offers opportunities for traders to capitalize on strategic price movements. Yesterday, we analyzed the Pyth Network cryptocurrency, which provided such an opportunity and confirmed buy positions that resulted in a 14% price increase.

If you missed out on that move, Dogecoin now presents a similar setup, albeit with some differences. While Dogecoin has not yet shown full bullish strength, its current price development suggests there is still a chance for a profitable entry before the end of the year.

4-hour time frame analysis

DOGEUSD - 4 Hour Time Frame

The buying strategy for Dogecoin revolves around two critical factors: the initial selection of Sell-Side Liquidity and the subsequent closure of the key resistance zone. While these steps establish the foundation for a bullish outlook, Dogecoin faces two technical hurdles that traders must consider.

Firstly, although Sell-Side Liquidity has been withdrawn, the resulting low has created additional liquidity close to the previous day’s low. This clustering suggests that retail traders have accumulated buy orders around perceived support levels.

However, this can complicate price movements, as liquidity zones often attract further downward testing before a sustained upward push occurs.

The second challenge lies in the resistance zone on the daily time frame, highlighted in blue on the chart. This resistance remains intact and must be convincingly breached during an impulsive bullish move.

Without a decisive closure above this level, the probability of a sustained bullish trend diminishes.

Dogecoin price target

Proper risk management is essential when trading Dogecoin, especially in setups with clear technical barriers. To mitigate potential risks, traders should place a Stop Loss order below the internal low, as marked on the chart. This helps ensure losses are controlled in case of adverse price movements.

For Take Profit levels, three targets can be considered. The first two align with key clusters of Buy-Side Liquidity, which are likely points of order pairing during an upward move. The third target is the psychological level at $0.6, a historically significant zone that often acts as a magnet for price action due to its importance among market participants.

By implementing these levels, traders can maximize profit potential while maintaining a well-balanced risk-to-reward ratio.

Dogecoin’s ability to surpass its all-time high by year-end hinges on its capacity to overcome the outlined resistance levels and sustain bullish momentum. While the opportunity for a profitable entry remains, traders must exercise patience and discipline.

Monitoring key technical zones and adhering to risk management strategies will be essential for navigating this trade successfully. If bullish momentum solidifies, Dogecoin could offer a significant opportunity for traders aiming to capitalize on its next major move.