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Following the recent market-wide sell-off, Dogecoin has faced significant pressure, seeing a 20% decline from its local highs. Despite the decline, the popular meme coin still holds a bullish structure, keeping investors optimistic about its potential recovery. However, the current levels are critical, as Dogecoin is testing key demand areas that could determine its next move.
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Senior analyst and trader BigCheds recently shared a technical analysis on X, highlighting that DOGE is testing the crucial demand at $0.31 on the daily time frame. This level has historically been a strong support area, and stability above it could pave the way for a bounce and continuation of the uptrend. On the other hand, failure to maintain this level may open the door to further decline.
Market sentiment remains cautious following a decline in the broader cryptocurrency market, but DOGE’s ability to maintain current levels could restore investor confidence. All eyes are now on whether the meme can defend this key support and perhaps pave the way for a new high or if additional selling pressure will lead to a deeper correction.
Dogecoin gets pivotal support heading into 2025
The beginning of 2025 took on a different tone for Dogecoin compared to the end of 2024. Starting in early November, DOGE saw a massive price surge, rising more than 230% in less than three weeks. This rapid rise has seen the meme coin reach significant levels, reigniting interest and optimism among investors. However, since finding a local spike, Dogecoin has entered a consolidation phase, testing critical support levels.
Currently, Dogecoin is trading at around $0.31 USD Key daily demand level set by BigCheds chief analyst. In its latest technical analysis, BigCheds emphasizes the importance of this support area, as it could determine the next major move for the cryptocurrency. If DOGE can hold above $0.31, this sets the stage for a potential breakout to higher prices, reigniting the bullish momentum we saw in late 2024.
This consolidation phase is being closely watched by traders and investors, as Dogecoin’s ability to maintain its bullish structure depends on this level. A clean bounce from demand at $0.31 could spark renewed buying pressure, pushing DOGE toward new highs. Conversely, missing this important support may indicate a deeper correction, testing lower levels before any recovery.
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As the broader market finds its footing as well, Dogecoin’s performance at this pivotal level will likely influence its trajectory over the coming weeks. A successful defense at $0.31 could mark the start of another significant rally, cementing DOGE’s position as a major contender in the cryptocurrency space.
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Dogecoin is currently trading at $0.33, showing resilience after stabilizing above the critical demand level of $0.31. This support has provided a foundation for DOGE to stabilize after the recent market sell-off. However, the cryptocurrency remains at risk as long as it continues to trade below $0.40, a level that could reignite bullish momentum.
For the bulls to regain control, the price must reclaim $0.40 decisively. This would signal a shift in sentiment and provide the momentum needed to challenge the $0.43 mark. A break above $0.43 is a crucial milestone for Dogecoin, as it will likely trigger a surge in price discovery, attracting renewed interest from investors and traders.
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Conversely, failure to reclaim $0.40 in the near term leaves DOGE vulnerable to further decline. Trading for a prolonged period below this level increases the risk of a deeper correction, which could test lower levels of demand. The next few days will be pivotal for Dogecoin’s trajectory, as broader market sentiment and DOGE’s ability to reclaim key levels will determine its direction.
If the bulls succeed in rising above $0.43, the meme could quickly gain momentum, cementing its position as the market leader this cycle.
Featured image by Dall-E, chart from TradingView
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