- From its recent two-week low of $0.0581, Dogecoin (DOGE) price surges nearly 18% to hover around the $0.067 mark.
- Dogecoin’s market sentiment has improved, but it faces a significant barrier in the form of a downsloping resistance trendline.
In the ever-fluid world of cryptocurrencies, Dogecoin (DOGE) has made headlines with an encouraging price rally. Despite its two-week low of $0.0581, this meme-inspired cryptocurrency has seen a vigorous 18% surge, pushing the price needle towards the $0.067 threshold. However, it must break through a considerable barrier – a downsloping resistance trendline – to continue its recovery path.
Dogecoin’s market has seen increased buyer accumulation, but the resistance trendline has slightly thwarted the coin’s momentum. A close look at the daily chart reveals a meager 0.3% intraday gain, and long-wick rejections suggest persistent bearish activity at this dynamic resistance level.
If the bearish momentum gains traction, Dogecoin could potentially experience a 5.3% tumble, bringing it back to a local support zone of $0.63. However, this could present an opportunity for buyers to use the robust horizontal support as a launching pad to challenge the overhead trendline again.
Should Dogecoin manage to break out from this trendline, it would signal a return to the recovery rally, propelling the DOGE price towards a $0.083 ceiling.
Meanwhile, if the coin fails to hold the $0.063 support level, there is a possibility of a minor coiling in Dogecoin’s price between the downsloping resistance trendline and the $0.063 support. A break of this support level might trigger a bearish plunge, pushing the price back towards $0.0582, effectively undermining the coin’s recent recovery.
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The 24-hour trading volume of Dogecoin currently sits at $193.4 million, which, despite being a 34% loss, shows the investors’ continued interest in this memecoin.
Given Dogecoin’s trajectory of producing lower highs and lows since April, the coin now appears to be tightening into a range, stirring anticipation for a potential bullish breakout. A successful breach of the resistance level could trigger a significant upswing, reaching liquidity levels above $0.0721. In case of sustained bullish momentum, DOGE could target the next obstacle at $0.0814, yielding a 20% gain from its current position.
However, all eyes should be on the $0.0631 support level, an important checkpoint for bullish investors. A daily candlestick close below this level, flipping it into a resistance, could invalidate the bullish thesis, leading to a 21% drop and sweeping liquidity below the lows at $0.0497.
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