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Dogecoin is facing major resistance, having risen to $0.22, which reflects a year-to-date loss of 32.50%. Although the overall cryptocurrency market has started showing signs of recovery, DOGE has not advanced much. As of press time, the memecoin is unable to clear the key resistance at $0.24, and its latest consolidation shape is the symmetrical triangle. This makes it more vulnerable to falling.
The recent price dip of Dogecoin has led to uncertainty about its future price performance. Indicators like Bull Bear Power (BBP) are trending into negative zones, a sign that the bears are in control. Currently, the BBP is at -0.016, which implies that the sellers are in control of the market.
In addition, the price of DOGE is struggling to breach the 20-period Exponential Moving Average (EMA), which serves as a resistance level. These factors indicate a potential further drop below the 0.20 mark unless buying pressure prevails.
The price pattern indicates that DOGE is currently in a symmetrical triangle, which commonly precedes a breakout. At the base of the triangle, the token is experiencing critical support at the $0.22 area, with $0.20 being the next important area to pay attention to. Failure to support this level may push it further down to $0.15.
However, analysts believe that a technical breakout above the $0.24 level may drive DOGE to even greater heights. The Bollinger Bands (BB) have widened, meaning that there is increased volatility, which could cause a faster move up or down.
Also Read: Dogecoin News Today: $208M Dogecoin Whale Transfer to Binance Triggers Volatility Concerns
Major whales are also affecting Dogecoin's market dynamics. A huge 900 million DOGE transaction into Binance has raised fears of greater selling pressure in the short term. According to on-chain data, however, whales accumulated more than 680 million DOGE last month, signaling long-term belief in the token.
Although the market may be facing a recent backlash, the current volatility of the general crypto market caused by central bank hawkish policies also contributed to the current price movements of DOGE.
Dogecoin currently has an unclear future, as the market is divided into optimistic and pessimistic parties. Some analysts argue that there could be a 3x uptrend that would drive the price to new highs, but others warn that the technical picture currently looks bearish. The coming days will also play a pivotal role in determining whether the token will finally leave its consolidation phase and slide further into negative territory, or it will move to a higher level.
