Dogecoin’s (DOGE) price may be entering a consolidation phase around the $0.16 level. The asset seems to have found some support at the $0.16 price level. However, the asset is still trading in the red zone across the board. According to CoinGecko’s Dogecoin data, DOGE’s price has fallen 1.5% in the last 24 hours, 11.3% in the last week, 8.1% in the 14-day charts, and 13.9% over the previous month. The original memecoin has also dipped by 54% since November 2024.
Will Dogecoin Recover After Its Price Consolidation?
The cryptocurrency market is facing one of its most significant price crashes in recent times. Dogecoin (DOGE) and the larger market have seen record liquidations over the last few days. The market dip could be due to worries around slow economic growth and rising inflation. Investors may be pricing in a prolonged period of no interest rate cuts.
Given that prices are hovering around the $0.16 level, Dogecoin (DOGE) could see a long consolidation phase. The market is following Bitcoin’s (BTC) trajectory, and the original crypto is showing no signs of a recovery yet.
According to CoinCodex analysts, Dogecoin’s (DOGE) price may consolidate around current levels for the next few weeks before entering a rally. The platform anticipates the memecoin to hit $0.2017 on Dec. 11. Hitting $0.2017 from current price levels will entail a rally of about 25.28%.
Also Read: Dogecoin Price Ready for Lift-Off, Structure Screams 10x–33x: Analyst
However, there is also a possibility that the market will continue its bearish outlook for the next few months. Such a scenario could lead to Dogecoin (DOGE) dipping further. Some analysts believe Bitcoin (BTC) could fall to around $56,000. BTC falling to $56,000 may likely lead to DOGE gaining a zero after its decimal point. The market is still steaming with volatility, and prices could go either direction.
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