Dogecoin (DOGE) Rally Captures Traders' Attention, ATH Retest Eyed

Dogecoin's DOGE/USD rally back above 40 cents has captured the attention of traders, with many expressing optimism about a potential rally to new highs.

Technical traders are keeping a close eye on Dogecoin (CRYPTO: DOGE) following its recent rally back above $0.40.

Here's a roundup of what some traders are saying about DOGE's next move.

What's Happening: Following a period of consolidation around $0.40, DOGE is up 6.5% on the day, trading around $0.425 at the time of writing.

After showing signs of slowing down, technical analysts are signaling bullish indicators on multiple timeframes.

Prominent trader Eugene Ng highlighted Dogecoin's resilience after reclaiming the $0.40 mark.

"Reclaiming 4H after faking down below 40c looks to me like this was indeed some healthy consolidation," he tweeted. "Don't think we've ranged in this region for this long just to flag out without trying to reach ATH again."

Trader Kevin is also eyeing up emerging bullish signals on the 4-hour timeframe, pointing out a hidden bullish divergence as a key technical development.

“Let's get back above .41 cents (.786 Fib) and we'll be back in business," he tweeted, highlighting how breaking through key resistance levels could spark further momentum to the upside.

Others, such as analyst Ali, tempered enthusiasm with a reminder of historical patterns.

He compared the current market setup to past parabolic Dogecoin runs in 2017 and 2020, which included brief corrections before sustained rallies.

"Dogecoin is going to test your patience in this parabolic run! Just like in 2017 & 2020, we got a sell signal from TD, anticipating a brief correction before the bull rally continued," Ali noted.

The excitement around Dogecoin comes amid broader discussions about the cryptocurrency's future, particularly its prospects for institutional adoption.

With a new U.S. administration that has shown a crypto-friendly stance, the possibility of a Dogecoin exchange-traded fund (ETF) is also generating interest.

Currently, Dogecoin is the sixth-largest cryptocurrency by market cap, trading at around $0.40 with a market valuation of $59 billion.