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Dogecoin Price Looks To Close January On A Positive Note, Will February Be Any Different?

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Dogecoin has managed to maintain a comparatively constructive place in the direction of the tip of January regardless of the intense volatility throughout the month. With January virtually over and the Dogecoin worth closing the month on a constructive word, the following outlook is what lies forward for the meme coin and whether or not Dogecoin traders can see a comparable worth development in February. 

Dogecoin Value Efficiency In January

Dogecoin’s worth motion in January was stuffed with intense volatility. The meme coin opened the month buying and selling across the $0.315 worth stage, having declined within the latter half of December. Curiously, this opening worth proved to be an essential help stage all through the month, with Dogecoin repeatedly testing and bouncing off it in response to market fluctuations.

Associated Studying

When it comes to efficiency, Dogecoin’s worth swings in January mirrored the turbulence seen throughout the crypto market, with vital manipulation taking part in a job in its trajectory. After beginning the month at roughly $0.315, the meme coin trended upwards for the primary seven days, consistent with Bitcoin’s resurgence above the $100,000 worth stage.

This primary upward motion noticed the Dogecoin worth attain $0.39 on January 7. Nevertheless, it was short-lived, as the extraordinary volatility talked about above noticed these positive factors erased inside 48 hours. Following a rejection close to $0.4, Dogecoin fell by about 19% in two days earlier than finally bouncing off help at $0.31. Curiously, Dogecoin would come to retest this stage two instances throughout the subsequent 5 days. 

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The second retest of this help zone led to a powerful 40% rally that pushed DOGE above the $0.40 resistance stage once more after a number of makes an attempt. This upward momentum peaked with Dogecoin reaching $0.4313 on January 18.

Nevertheless, this worth excessive was met with one other rejection, resulting in a recent downtrend. Dogecoin and lots of different cryptocurrencies witnessed a surge of outflows in capital rotation as many traders FOMOed on Donald Trump’s meme coin, launched on January 17. Regardless of this big setback, Dogecoin as soon as once more discovered help on the $0.315 stage, reinforcing its significance as a strong worth ground.

What To Anticipate In February: Sustaining Momentum Or Going through A Reversal?

The euphoria surrounding Donald Trump’s election and meme coin has ended, the market appears to be cooling down, and Dogecoin has begun a gradual restoration above $0.31. As January attracts to an in depth, the curiosity is on February to see if the memecoin can preserve its present momentum throughout the month or bear one other unstable motion inside a variety.

Associated Studying

On the time of writing, DOGE is buying and selling at $0.33, up by about 4.25% from its January open. In line with historic price data from CryptoRank, the Dogecoin worth has trended downwards in February most of the time. Nevertheless, February 2024 proved to be a constructive month for the meme coin, because it closed the month on a 50% achieve from its open. An analogous efficiency would see Dogecoin closing February round $0.5 if it had been to shut January at its present worth. 

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Dogecoin
A show of DOGE’s month-to-month performances | Supply: Chart from CryptoRank

In line with a crypto analyst, present market dynamics counsel DOGE will quickly bear a strong pump above the $0.4 price level. Nevertheless, a very powerful factor proper now can be for Dogecoin to carry above $0.315 and $0.3. Failure to carry above these ranges might erase bullish momentum.

Dogecoin
DOEG buying and selling at $0.32 on the 1D chart | Supply: DOGEUSDT on Tradingview.com

Featured picture from Unsplash, chart from Tradingview.com

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