The price of Dogecoin is Now at a critical crossroads It is hovering near a support level that may determine its direction in the short term. A recent analysis on TradingView highlights the importance of the $0.394 support, with results suggesting both bullish and bearish scenarios depending on price action at this support level.
Dogecoin’s main support area is facing increasing pressure
Dogecoin’s price action in the past seven days has been highlighted by hovering around $0.40, a key psychological threshold for the meme coin. The balance between buying and selling pressures appears to be tight, leading to a consolidation move that could break in either direction.
According to technical analysis From the 4-hour Dogecoin price chart on TradingView, the meme coin could test $0.394 in the next few hours, and a decisive move here could lead to a bullish bounce or further breakout to the downside.
In the first scenario, a short-term decline towards $0.394 followed by a bounce indicates that the bullish strength surrounding Dogecoin price remains intact. From there, we could see Dogecoin retest $0.432. A decisive break above $0.432 in one quick move would provide the much-needed momentum for a break above the current 2024 high of $0.485.
As such, technical analysis predicts that in this case, the next resistance to watch is at $0.485. A breakout of this resistance could allow Dogecoin bulls to target higher price levels beyond $0.50 and possibly all-time highs.
On the other hand, the analysis warns of risks if Dogecoin fails to hold above $0.394. Bearish sentiment could take over if buyers fail to regain control at $0.394. In this scenario, the next major support to watch is $0.374. Failure to stabilize here could accelerate the bearish momentum and push Dogecoin price towards notable support at $0.342.
Dogecoin price is leaning towards bullish momentum
Although technical analysis suggests that Dogecoin price could move in either direction, current market sentiment is pushing the cryptocurrency toward the bullish end. In particular, trading volume, resistance and technical indicators Point to another breakthrough. This sentiment is based on the expectation that Dogecoin price will break multiple resistance levels in the coming weeks and months.
One such technique The indicator is a Gaussian channel, Which indicates that Dogecoin price is on track to reach at least $2.5 this cycle. It is worth noting that $2 It has been a recurring price target This cycle, with many analysts predicting a certain breakout above it by 2025.
At the time of writing, Dogecoin is still trading at the $0.4 support level, although it is currently up a meager 0.53% over the past 24 hours..
Featured image created with Dall.E, chart from Tradingview.com
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