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Dogecoin is still trading close to the $0.206 mark, stuck at a crucial consolidation phase that has left the traders uncertain about its next move. Despite testing major resistance, the price is struggling to gain momentum.
Dogecoin price has been capped below the major $0.217-$0.220 area, where it has repeatedly been resisted, and it is now uncertain of a deeper plunge in the market.
Based on the technical signals, Dogecoin is losing momentum. The cryptocurrency's price is below key Exponential Moving Averages (EMAs), which offer overhead resistance. The Relative Strength Index (RSI) is at 60.67, which indicates a slowdown in buying activity. Moreover, the Supertrend indicator has drawn bearish further backing the price trend that Dogecoin could experience difficulty breaking above the critical $0.2468 resistance level.
Bollinger Band borders also point to a shrinking of price action about the $0.206-$0.210 price range, meaning that Dogecoin is contracting within a narrow trade range. As the price is not able to overcome the resistance point of $0.217, the fear of the price falling below the current support level increases.
Should the price fall below $0.20, it may fall further to approximately $0.195-$0.196, which may indicate that there could be further correction.
Also Read: Is Dogecoin the Next Big Thing in Global Payments?
Dogecoin's market flow data adds pressure to the asset’s outlook. The trading volume decreased by 18 percent to $1.45 billion in the past 24 hours, which indicated a decrease in investor interest. Moreover, $1.37 million of Dogecoin were taken out of exchanges, another signal of a bearish mood.
The On-Balance Volume (OBV) indicator, which follows the volume of buying, is stuck at $64.5 billion, indicating that there are no substantial buying signals that may drive the current trend.
Despite these factors, market analysts remain uncertain about Dogecoin’s short-term future. Additionally, analysts argue a recent price recovery could occur while others caution that increasing competition from emerging meme coins could set back DOGE’s potential to bounce back. New additions to the meme coin field are starting to trend, resulting in a market shift.
The larger crypto market is also volatile and Bitcoin fluctuations have been seen along with other altcoins such as Solana and XRP. This indecisiveness has crossed over to Dogecoin, as social media opinion is mixed. Analysts are currently expecting a breakout above the resistance at $0.213 that will result in a short-term price rally to prices possibly up to $0.226 or even $0.246.
Nonetheless, any fall below or close to $0.195 indicates further decline in the bearish trend that will keep investors on edge.
The market's extreme volatility is possible because there is no clear consensus on Dogecoin’s long-term prospects. As traders and investors monitor the cryptocurrency market's changes, it is crucial to watch key support and resistance levels.
