Dogecoin’s price is currently at a critical point as it stays near a support level that may shape its short-term trajectory. A recent review on TradingView emphasizes the significance of the $0.394 support, indicating potential outcomes that lean towards both bullish and bearish trends based on its movement at this support level.
Growing Pressure on Dogecoin’s Critical Support Zone
Over the last week, Dogecoin’s price action has been defined by fluctuations around $0.40, a vital psychological barrier for the cryptocurrency. The equilibrium between buying and selling pressures appears tight, culminating in a consolidation phase that is likely to break in either direction.
As per technical analysis of the 4-hour candlestick Dogecoin price chart available on TradingView, the meme coin is expected to test $0.394 in the coming hours, with a decisive move at this level potentially leading to either an upward rebound or further declines.
In the first instance, a brief dip towards $0.394 followed by an upward bounce would imply that the bullish momentum surrounding Dogecoin remains strong. This could pave the way for a retest of $0.432. A decisive rise above $0.432 in a swift movement could provide the necessary push to surpass the current 2024 peak of $0.485.
Consequently, the technical analysis suggests that, in this scenario, the next resistance to observe would be at $0.485. Overcoming this resistance might allow Dogecoin bulls to aim for price levels exceeding $0.50, potentially setting sights on new all-time highs.
Conversely, the analysis warns of potential risks if Dogecoin fails to maintain its position above $0.394. A prevailing bearish sentiment could arise should buyers fail to reclaim control at this level. In such a case, the next significant support to watch for would be $0.374. Inability to stabilize here could intensify bearish momentum and drive Dogecoin’s price towards notable support at $0.342.
Dogecoin Price Trends Toward Bullish Momentum
While technical analysis indicates potential for Dogecoin’s price to move in either direction, the prevailing market sentiment appears to favor a bullish outlook. Notably, trading volume, resistance, and technical indicators suggest a forthcoming breakout. This sentiment is fortified by the expectation of the Dogecoin price climbing above several resistance levels in the upcoming weeks and months.
One such technical indicator is the Gaussian Channel, which indicates that the Dogecoin price could be on the path to reaching a minimum of $2.5 this cycle. Notably, $2 has emerged as a recurring price target this cycle, with many analysts anticipating a definitive break above it by 2025.
As of this writing, Dogecoin remains trading around the $0.4 support level, showing a modest increase of 0.53% in the last 24 hours.
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