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Dogecoin is trying to break the resistance level: Will the buying side gain control or gradually disappear?
According to CoinGecko data, the price of Dogecoin (DOGE) is currently consolidating around $0.25. After breaking through the resistance levels at $0.24 and $0.25, DOGE is now trading well below the $0.2655 resistance zone. However, the price is still above $0.25 and the 100-hour simple moving average, indicating the potential for further increase. Additionally, the break of the downtrend line connecting with the resistance level near $0.2515 on the hourly chart suggests the possibility of another price increase if it surpasses the resistance levels at $0.26 and $0.2655. Front resistance level The next important resistance level on the upside is near the $0.260 level. Another resistance for buyers is near $0.2655, which is the 50% Fibonacci retracement level of the downward move from the $0.2933 high to $0.2388 low. The next key resistance is near $0.2725. A close above $0.2725 could open the doors for a move towards the higher resistance at $0.300; furthermore, continuous gains might lead the price towards the $0.320 level. The next important target for buyers could be $0.3420. The next potential reduction If the price of Dogecoin (DOGE) cannot hold the important support level of $0.260, we should expect the price to decrease further, possibly testing the $0.250 range. Immediate support zone for the bulls is at $0.2520, while if the bears break through, the next important support zone may lie between $0.2500 and $0.2380. Analysts also emphasize the importance of holding this level, as a drop below $0.2380 could lead to a stronger price increase.
If the price drops below $0.2380, DOGE may suffer deeper losses, with corresponding support levels at $0.2250 and $0.2120. Buyers may step in to defend this area as it was previously a demand zone. However, in case of weakened sentiment or selling pressure on Bitcoin, DOGE could become vulnerable. Market observers should also pay attention to external influences such as the broader trend of cryptocurrencies, meme coin market behavior, and investor demand. If support levels are broken, the derivatives market - currently with unusually high long positions - may witness liquidation pressure leading to a decrease. Traders, as usual, should closely monitor key levels and adjust their viewpoints accordingly. The views of analysts However, analysts emphasize some key patterns in the price fluctuations of Dogecoin. On this issue, an experienced analyst notes a historical scenario, in which after a strong increase, DOGE went through three correction structures, A, B, C, with C seemingly ending in a crucial support zone of $0.24-$0.18, which is considered a "major supply turning into demand zone". This framework indicates the possibility of DOGE rebounding from this support zone. Market sentiment and prospects in the future A larger meme space also reflects some optimism. An example of this is PEPE, another meme coin that has increased by nearly 8%, raising the market capitalization to $4 billion. If so, this price increase in the memecoin space may act as a catalyst driving the price of DOGE. In the derivatives market, there are $71.2 million in long leverage positions and $51 million in short positions, with DOGE's long positions outnumbering short positions by 30%, a sure sign of confidence in the upward trend. Higher long positions during price recovery often imply that most traders anticipate the price surge to continue towards higher resistance levels. Will the Bulls overcome the resistance or face the next retreat? Opportunities and challenges are presented by the current consolidation phase of Dogecoin. While resistance levels will create barriers, the positive characteristics inherent in the memecoin market as a whole, along with increasing derivative data, indicate that upward progress may be imminent. Only time will tell where the S&P 500 will go next, but it is essential for both traders and investors to closely monitor significant support and resistance levels. DYOR! (Write&Earn $DOGE {spot})DOGEUSDT#Write2Earn #