Dogecoin Touches Important Resistance Level: Will the Price Soar to $0.40 or Fall?

Although Dogecoin (DOGE) is still down 45% from its all-time high of $0.7316 achieved in 2021, DOGE has seen a significant increase since the beginning of the year, up over 400%. At the time of writing, the leading memecoin is trading at $0.404, up 5.6% in the past 24 hours. Analysts believe that this price level marks an important turning point that could significantly impact Dogecoin's trajectory in the days to come. Dogecoin's key resistance point The recent price increase has attracted significant attention from analysts. Recently, the famous cryptocurrency analyst Ali shared his technical analysis of his cryptocurrency through his X account. In the post, the analyst marked a descending channel on the DOGE price chart. According to Ali, Dogecoin is currently testing a significant resistance level. He claimed that a breakout "sustained" above the $0.40 price level could push the price up to $0.43.

However, if DOGE fails to surpass the $0.40 threshold, the asset is likely to face another significant drop, pushing the price down to $0.36 or even $0.34. The main developments reinforce the price increase of DOGE. In addition to price fluctuations, Dogecoin has recently benefited from some positive developments that help strengthen investor confidence. An notable example is the establishment of a new government agency called the Department of Government Efficiency (DOGE) in the United States. This abbreviation is similar to the code of Dogecoin. In addition, cryptocurrency issuer Valour has introduced a trading product on the exchange (ETP) for Dogecoin. A press release was uploaded at the beginning of today with the content: DeFi Technologies' subsidiary Valour Inc. has introduced the Valour Dogecoin (DOGE) ETP on the Spotlight stock market in Sweden, marking the first Dogecoin ETP presence in Northern Europe. This launch expands Valour's digital asset product suite, providing investors with the opportunity to access Dogecoin, which currently has a market capitalization of approximately $59.5 billion, ranking as the 7th largest digital asset globally. It is noteworthy that these milestones highlight the increasing recognition of organizations and mainstream towards DOGE, contributing to its continuous price increase. In addition to the deep technical insights of Ali, another analyst, Trader Tardigrade, shared a long-term perspective on Dogecoin. The analyst pointed out that DOGE maintains a recognizable wave pattern on its macro chart, predicting a potential explosive peak that could drive this cryptocurrency to as high as $20.