Dogecoin price up 6.5%: What’s going on?

Dogecoin‘S DOGE/USD The rebound above 40 cents has caught the attention of traders, with many expressing optimism about a possible rebound to new highs.

What happened: After a period of consolidation around $0.40, DOGE is up 6.5% on the day and is trading at around $0.425 at the time of writing.

Technical analysts are signaling bullish indicators for multiple time frames, fueling speculation about the cryptocurrency’s next move.

Prominent dealer Eugene Ng highlighted Dogecoin’s resilience after reclaiming the $0.40 mark.

“Reclaiming 4H after a fake dip below 40C actually seems like a healthy consolidation to me,” he tweeted. “I don’t think we’ve been in this region for so long just to get out of the way without trying to peak again.”

Kevinanother well-known trader, pointed to emerging bullish signals on the 4-hour timeframe and cited a hidden bullish divergence as a critical development.

“Let’s get back above 0.41 cents (.786 Fib) and we’ll be back in business,” he wrote, noting the potential for bullish momentum if key resistance levels are broken.

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Others, such as analyst Alimuted enthusiasm with a recollection of historical patterns.

He compared the current market situation to previous parabolic Dogecoin runs in 2017 and 2020, which included short corrections before sustained rallies.

“Dogecoin will test your patience in this parabolic run! Just like in 2017 and 2020, we received a sell signal from TD, expecting a short correction before the bull rally continued,” Ali noted.

The excitement surrounding Dogecoin comes amid broader discussions about the future of the cryptocurrency, particularly its prospects for institutional adoption.

As a new US administration has demonstrated a crypto-friendly stance, the possibility of a Dogecoin exchange-traded fund (ETF) is generating additional interest.

Currently, Dogecoin remains the sixth largest cryptocurrency, trading at around $0.40 and having a market capitalization of $59 billion.

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