Dogecoin Price Stalls as Crypto Pros Abandon DOGE For This Altcoin
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.
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.
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.
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.
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.
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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