©Reuters. Dogecoin (DOGE) Breakout Occurs, What’s Next? Solana (SOL) Remains Dominant, Will Ethereum (ETH) Survive the Stealth Stall?
U.Today -, the cryptocurrency that started as a joke but has become a favorite of the masses, including Elon Musk, recently experienced a significant breakout.
After a period of consolidation, DOGE broke through a critical resistance level, sparking excitement among traders and investors. The coin is currently above the $0.088 mark, which previously served as substantial resistance. If DOGE manages to maintain its position above this level, it could consolidate this area as new support.
Dogecoin/USDT chart by TradingView A break above the $0.095 resistance could signal a continued bullish trend, potentially leading Dogecoin to test the $0.10 psychological barrier. If momentum is sustained and market sentiment remains positive, DOGE could attempt to make higher highs, possibly moving towards the $0.105 to $0.11 range last seen during periods of peak trading activity. trading.
Immediate support for DOGE is now at $0.088 and, if held, could serve as a springboard for further climbs. However, if Dogecoin fails to hold this level, it could fall back to its previous support near $0.078, where buyers have historically shown interest.
A scenario in which DOGE’s rise continues would likely involve increased adoption news or a resurgence of interest in meme coins, potentially sparked by social media or celebrity endorsements. Such catalysts could stimulate demand and push DOGE above the $0.095 level, solidifying its breakout status.
Conversely, if the breakout fails to hold, perhaps due to a broader market downturn or a drop in interest, DOGE could slide below $0.088. This would once again test the resilience of the $0.078 support. A drop below this level could lead to a bearish phase, with DOGE potentially seeking lower ground.
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During this market cycle, Solana has established itself as a leader. With its stable and easily scalable performance, it surpasses giants like and , as most of the DeFi volume went to the “Ethereum killer”.
As the DeFi ecosystem on Solana flourishes, it is becoming a hub for innovation, fusing meme culture with decentralized applications. The network’s efficiency and scalability are attracting a wide range of developers.
The cryptocurrency that has followed a strong upward trajectory. Solana is currently testing a resistance level at around $100, a significant psychological and technical barrier. A convincing break above this level could signal continued bullish momentum, potentially leading to a test of the next resistance zone around $108, which coincides with recent highs.
On the downside, the 50-day moving average, hovering around $93.23, is providing dynamic support. This level has been defended several times, indicating its importance for traders. If Solana manages to stay above this moving average, this would strengthen the asset’s stability and could serve as a springboard for further gains.
The next crucial test for Solana will be to stay above $100. If it were to consolidate above this level, it would not be unrealistic to imagine a push towards $108, or even higher, as the market reevaluates Solana’s value proposition in the context of a rapidly evolving DeFi and NFT landscape.
Fundamental problems of Ethereum
As it struggles to gain momentum, Ethereum’s scalability woes and the diminishing traction of meme coins on its network are at the forefront of the bear case for the second-largest cryptocurrency on the market.
The network’s inability to handle high volumes of transactions without exorbitant fees has led to a perception that Ethereum is becoming “unusable” for the day-to-day transactions required by meme coins.
From a technical perspective, Ethereum price analysis paints a picture of uncertainty. The asset struggled to maintain momentum above crucial support levels. Currently, Ethereum is hovering around the $2,250 mark, with immediate support near the $2,150 level. A break below this support could result in a drop towards the psychological barrier of $2,000, which would represent a significant bearish development.
Layer-2 solutions such as Optimism and Arbitrum have emerged as potential stopgap solutions, offering faster and cheaper transactions. However, their adoption has been less than stellar, with many seeing these platforms as temporary fixes rather than a complete solution to Ethereum’s underlying scalability issues.
This article was originally published on U.Today