Dogecoin Price Stalls as Crypto Pros Abandon DOGE For This Altcoin

crispus
Updated
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Can Dogecoin Price Hit $1 Post-Grayscale Trust Launch?

Highlights

  • Dogecoin price may be about to form a double-top chart pattern on the daily chart.
  • This pattern points to an eventual bearish breakout in the near term.
  • Fartcoin is benefiting from the ongoing whale accumulation.

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.

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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. 

Dogecoin Price Chart
Dogecoin Price Chart

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.

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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. 

Experts are buying Fartcoin
Experts are buying Fartcoin

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. 

Fartcoin Price Chart
Fartcoin Price Chart

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.

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Frequently Asked Questions (FAQs)

1. Why is Dogecoin price struggling?

DOGE price is struggling as crypto investors rotate to newer meme coins like Pudgy Penguins and Fartcoin.

2. What is the outlook of DOGE price?

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.

3. Is Fartcoin a better investment than Dogecoin?

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.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
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.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.