Dogecoin has kicked off the new year with an impressive 29% rally from local demand levels, captivating investors and signaling its resilience in the crypto market. The meme coin leader is now testing critical resistance around the $0.40 mark, a level that could determine its next move.

Related Reading

Top analyst Bluntz recently shared an insightful analysis, emphasizing that Dogecoin appears to be in a strategic accumulation period. According to Bluntz, this phase is setting the foundation for an aggressive surge later in the cycle, potentially positioning DOGE for significant gains. Such accumulation periods are often precursors to explosive upward movements, especially for assets with strong community backing like Dogecoin.

The coming days will be pivotal for DOGE as it battles to break above the $0.40 resistance level. A successful breakout could ignite a bullish rally, reinforcing Dogecoin’s position as a market favorite. However, failure to clear this zone might result in short-term consolidation, delaying the anticipated surge.

Dogecoin Devising A Rally 

Dogecoin has displayed strong bullish price action since early November, defying market volatility and capturing the attention of investors. Even with its recent correction, the price has managed to recover, showing growth that underscores its potential for further upside.

Bluntz recently shared a technical analysis on X, highlighting the accumulation phase in the DOGE/BTC ratio. According to Bluntz, the ratio is “still accumulating,” suggesting that Dogecoin is preparing for a significant rally in this cycle. Bluntz confidently stated that there is “no chance” DOGE won’t surge during this bull run, reflecting the analyst’s optimistic outlook on the meme coin leader.

While Dogecoin’s trajectory looks promising, it’s essential to recognize the associated risks. Volatility remains a hallmark of cryptocurrency markets, and Dogecoin is no exception. The broader economic landscape adds another layer of uncertainty, with rising interest rates, inflation, and global economic pressures influencing investor sentiment. These factors could contribute to periods of sharp price fluctuations for DOGE.

Related Reading

For long-term investors, Dogecoin’s ongoing accumulation phase may present an opportunity to enter the market ahead of a potential breakout. However, risk management and a cautious approach are vital, especially given the unpredictable nature of both the crypto market and the global economy. If Dogecoin manages to clear key resistance levels, it could validate Bluntz’s bullish thesis and solidify its status as a top performer in this cycle.

Price In Consolidation

Dogecoin is currently trading at $0.38 after encountering resistance at the $0.40 mark. This level has temporarily halted DOGE’s upward momentum, placing the price in a consolidation phase. Such periods of sideways trading are not uncommon and could last for several days or even weeks as the market gathers strength for the next move.

Despite the pause, optimism remains high among investors and analysts. The $0.43 mark is emerging as a critical resistance level for DOGE. A clean breakout above this level would signify renewed bullish momentum, potentially propelling Dogecoin to multi-year highs or even new all-time highs. Achieving this would likely draw fresh attention from both retail and institutional investors, further bolstering its upward trajectory.

Related Reading

However, the path forward is not without its challenges. Market sentiment and broader crypto trends will play a significant role in determining whether Dogecoin can muster the strength to push higher. If the consolidation phase is accompanied by increased trading volume and strong buying support, the breakout scenario becomes increasingly likely.

Featured image from Dall-E, chart from TradingView

A firm that has adapted MicroStrategy’s Bitcoin reserve strategy with the meme coin Dogecoin has revealed plans to earn yield on its DOGE coins, with future ambitions to potentially offer products based on other major cryptocurrencies as investors look for new ways to get higher returns on their tokens.

Canadian investment firm Spirit Blockchain Capital said Thursday in a statement it intends to leverage its Dogecoin holdings through the new yield-generating strategy. The publicly traded company said the move will enable it to deliver value to its shareholders, in addition to expanding its treasury efficiency and enhancing the decentralized financial product adoption.

The initiative will serve as the bedrock for the company to launch potential yield-bearing strategies for other assets such as Bitcoin, Ethereum, Tether and Solana in the future, Spirit CEO Lewis Bateman said in a statement.

“We aim to unlock a previously untapped revenue stream while simultaneously positioning ourselves as a market leader in yield generation for not only Dogecoin, but the broader digital asset space,” Bateman said. 

How exactly the company plans to generate yield on its DOGE treasury is unclear, however, and the firm did not respond to Decrypt’s requests for comment. Spirit Blockchain Capital did not announce an exact date for its yield-bearing strategy’s rollout.

The company’s announcement comes a few months after it acquired Dogecoin Holdings, a firm that is amassing DOGE as a treasury reserve asset. Spirit previously declined to disclose the size of its Dogecoin treasury to Decrypt, citing regulatory guidelines for its acquisition.

Yield-bearing financial instruments such as stablecoins have gained steam during this latest crypto market rally, with several major companies rolling out new tokens in recent months to meet sky-high investor demand.

Crypto investors can also earn yield on assets through such measures as staking—or locking up assets within a proof-of-stake network to earn interest-like token rewards—or pledging assets to crypto lending services.

Edited by Andrew Hayward

The Elon Musk effect goes both ways.

Ethereum meme coin Kekius Maximus (KEKIUS) soared over 3,000% from a $12.7 million market cap to nearly $400 million, in the 30 hours following Tesla CEO Elon Musk changing his Twitter name to Kekius Maximus. But what comes up must come down. Once Musk changed his profile back to normal, it caused the token to plummet 67% in an hour to $95 million.

Kekius Maximus, according to the meme coin’s website, is also known as “Pepe the Frog Emperor.” The art depicts the popular internet frog meme as the ruler of a mythical empire. It appears that the meme was originally created using Grok, Twitter’s native AI tool, with Musk, who owns Twitter, endorsing it on December 10.

Over the coming days the Pepe-inspired meme gained more popularity with the likes of citizen journalist Autism Capital, the official Pepe meme coin account, and, of course, Musk posting about the Grok-generated meme. This resulted in KEKIUS launching on Ethereum and climbing to a $1.7 million market cap by December 27.

This is when Musk announced that his Path of Exile character would be named Kekius Maximus, resulting in a near 1,300% jump to a $20 million market cap. Keep in mind, that was before Musk changed his profile picture and name to the Grok-spawned meme on New Years Eve, causing the meme coin to go parabolic, nearly touching a $400 million market cap.

However, as the new year dawned concerning news circulated of a Tesla Cybertruck exploding outside of the Trump Hotel in Las Vegas, causing the driver to die in the blast. This prompted Musk to return to his original Twitter handle and profile picture to address the unfolding incident.

“The whole Tesla senior team is investigating this matter right now,” Musk posted. “We have now confirmed that the explosion was caused by very large fireworks and/or a bomb carried in the bed of the rented Cybertruck and is unrelated to the vehicle itself,” he later added.

This change of name and profile picture to address the still developing incident—that is now suspected as an act of terror by law enforcement—caused KEKIUS to crash 83% from its all-time high over just 10 hours.

Since the explosion, Musk has not posted about Kekius Maximus. Instead, he has shifted his attention to British politics.

Musk is currently pleading for far-right activist Tommy Robinson to be released from prison after being jailed for contempt of court in October—due to repeatedly claiming that a Syrian teenage refugee had violently attacked “young English girls,” to justify the refugee being waterboarded by fellow school pupils on camera, Robinson’s claim was disproven in court and he was ordered to never make the claims again, but he did—as well as endorsing the sixth largest political party in the country, Reform UK.

As you can expect, tons of meme coins have been created as a result including a Free Tommy Robinson (TOMMY) token that hit a $4.8 million market cap.

Edited by Stacy Elliott.