Investors Flee Dogecoin for This Explosive New Altcoin!

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The price of Dogecoin has paused following its reach of a significant resistance point on Wednesday, coinciding with a robust rebound in cryptocurrencies overall. Unlike Stellar and Ripple, it seems to be lagging behind other popular digital currencies. Moreover, there are indications that it may soon form a double-top pattern due to some crypto investors shifting their attention towards Fartcoin.

Dogecoin Price Technicals Point To A Reversal

After a nearly 10% increase on Wednesday, Dogecoin – the most well-known meme coin in the cryptocurrency market – has encountered significant resistance. On its daily chart, it seems to be forming a potential double-top pattern at around $0.40, which was its highest point on January 5. The lower boundary of this pattern is estimated to be at approximately $0.3107.

In simpler terms, a double-top pattern is among the most reliable signs for a bearish price reversal in technical analysis charts. This could potentially indicate a sharp reversal in Dogecoin’s (DOGE) price trend as the current bullish surge starts to weaken.

If the double-top chart pattern proves effective, it’s likely that Dogecoin will first drop down to the neckline at approximately $0.3107, and subsequently head towards its next significant support level at around $0.2637, which was its lowest point in December.

If the price of DOGE experiences a bullish surge towards $0.40, it would contradict the bearish perspective and instead suggest further growth, potentially reaching its record high of $0.4837 in 2024. This upward movement could represent a significant increase of 26% from the current price level, as optimism around an ETF approval fuels the value of DOGE.

Traders Are Moving To Fartcoin

One possible explanation for the difficulty Dogecoin’s price is facing could be that a significant number of investors have moved towards newer meme coins based on Solana, such as Fartcoin. In fact, Fartcoin has been one of the standout performers in the market since last December.

The price increase exceeding 6,000% since its lowest point in November last year places it among the top performers. This surge has elevated its market capitalization above $1.2 billion.

One possible explanation for the recent surge in value is that numerous crypto analysts have been steadily buying this digital currency. In fact, during the past week, there have been six transactions totaling more than a million dollars each.

Over the past few days, the Fartcoin token’s price on the four-hour chart has made a robust comeback, bouncing back from its weekly low of $0.6800. This significant rebound aligns with an ascending trendline that links the lowest point since December 5.

Currently, there’s an attempt to surpass a significant resistance level at $1.2966, which was its peak on December 20th and 25th. If this level is successfully broken, it suggests further growth, possibly reaching the all-time high of $1.6108 and then aiming for the psychologically significant point at $2. However, a fall below $1 would contradict the bullish outlook.

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2025-01-16 18:18