Key data from IntoTheBlock highlights the importance of short-term traders in driving liquidity for meme coins like DOGE. This cohort of traders remains a significant source of activity, often influencing rapid price fluctuations.

Dogecoin is holding strong above the critical $0.10 level, a key psychological support for the asset. If the price maintains momentum, the next bullish target is around $0.11, which could spark more excitement and buying interest in the market.

As speculation continues, all eyes are on whether Dogecoin can sustain its recent strength or if it will face another wave of selling pressure. The coming days determine the meme coin’s direction in the weeks ahead.

Dogecoin Price Driven By Speculation 

Dogecoin faces intense speculation as investors and analysts express differing views about its future price action. After several weeks of ups and downs, the meme coin has been subjected to massive volatility, reflecting the overall market’s erratic behavior. The uncertainty surrounding Dogecoin has led to heated debates about whether it will rally or continue to fall.

Key data from IntoTheBlock reveals the pivotal role of short-term traders in driving meme coins, particularly Dogecoin. These tokens thrive on hype and speculative trading activity, and DOGE leads the pack with the highest number of active short-term traders.

Over the past week, Dogecoin has seen approximately 113,000 short-term traders, underscoring its dominant position in the meme coin space.

Interestingly, DEGEN, a much smaller token, has also attracted around 23,000 short-term traders—similar to Shiba Inu’s, despite DEGEN’s market cap being only 10% of Shiba Inu’s size. This highlights the speculative frenzy within the meme coin ecosystem, where even lesser-known assets garner significant trading activity. Most mid-sized meme coins, in comparison, show only around 4,000 active short-term traders, illustrating Dogecoin’s continued strength.

Despite the speculative nature of these assets, Dogecoin’s ability to attract the most active traders signifies resilience and hints at a potential for future rallies, even amid broader market uncertainty.

DOGE Holding Above $0.10

Dogecoin (DOGE) trades at $0.108, testing the 4-hour 200 moving average (MA) as resistance. Bulls aiming to maintain momentum must reclaim this key indicator to increase prices. The 4-hour 200 exponential moving average (EMA) also sits at $0.1088, just under 1% above the current price. This creates a crucial resistance zone for DOGE.

A clear break above the 200 MA and 200 EMA and the psychological $0.11 mark would likely trigger a rally, pushing the price higher as bullish momentum takes hold. However, failure to reclaim these indicators could lead to a more significant correction. In this case, DOGE could face a drop to $0.088, a key lower demand level, signaling further downside in the coming days.

As Dogecoin continues to test these levels, traders are closely watching for a decisive move that could indicate the next major trend, with the potential for a rally or further decline hinging on whether bulls can reclaim these moving averages and push beyond $0.11.

Featured image from Dall-E, chart from TradingView

However, October kicked off with increased selling pressure, leaving investors searching for signs of strength in Dogecoin’s price action.

Top analyst Mister Crypto has shared a bullish outlook, stating that Dogecoin could begin its next rally “any time now.�?His technical analysis highlights key support levels and suggests that the current price could be a launchpad for significant upside movement. 

Despite the recent dip, many traders remain optimistic that DOGE could soon recover and enter a new bullish phase. All eyes are now on whether Dogecoin can hold its critical demand level and break out shortly.

Dogecoin Testing Crucial Demand

Dogecoin is currently surrounded by speculation as investors and analysts offer varying opinions on its future price action. After several weeks of significant ups and downs, the meme coin has seen massive volatility, reflecting the broader market’s uncertainty. Some analysts remain optimistic about Dogecoin’s prospects, while others caution against getting too bullish too soon.

A technical analysis shared by prominent analyst Mister Crypto on X suggests a potentially bullish scenario for DOGE. His analysis highlights a 4-day (4D) price chart, where a bullish triangle pattern has just been broken.

This breakout signals a possible rally ahead, which, if realized, could lead to gains exceeding 100%. Mister Crypto’s forecast has sparked renewed hope among Dogecoin traders, who are now carefully managing their risk in anticipation of this potential move.

However, despite the optimism, there is still no clear confirmation that Dogecoin has entered a new bull run. For this bullish scenario to be validated, the price must close above the current demand level and hold support.

Until then, the market remains cautious, and investors are waiting for further price action to confirm whether Dogecoin will break out or continue to trade sideways. With so much speculation and uncertainty, the coming days will be critical for DOGE’s trajectory.

Price Action: Technical Levels To Hold

Dogecoin (DOGE) is currently trading at $0.106 after experiencing an 8% dip since Monday. The price has lost both the 4-hour 200 moving average (MA) at $0.107 and the 200 exponential moving average (EMA) at $0.108, placing DOGE in a precarious position as it now tests crucial demand levels.

For bullish momentum to return, DOGE needs to break back above these key indicators and reclaim the $0.12 mark. A surge beyond this level could set the stage for a higher push, giving bulls the control they need to shift market sentiment. However, the current market environment remains fragile, and any failure to recapture the 4-hour MAs could signal further downside.

If DOGE fails to hold its current levels, analysts anticipate a deeper correction that could drive the price down to around $0.08, a key support zone.

Traders are watching closely to see if DOGE can stabilize or if more downside is ahead. This makes the coming days crucial for determining whether the meme coin can rebound or face further selling pressure.

Featured image from Dall-E, chart from TradingView