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Dogecoin has experienced a significant decline recently, with prices dropping around 18% from its recent peak. Concerns regarding the meme coin's future trajectory have been raised by this abrupt decline, which has shocked the community. Here are three crucial levels for investors to keep a close eye on Dogecoin's price movement to monitor, as the asset tries to level off or possibly even reverse its current bearish trend.
$0.10 support level
The psychological and technical support at $0.10 is the first crucial level to keep an eye on. This price barrier is crucial and has traditionally served as a foundation during downturns in the past. Dogecoin may experience some brief consolidation and even a reversal if it can hold above this support level. Breaking below $0, however, might lead to more selling pressure and further declines.
200-Day moving average
As of right now, Dogecoin is trading slightly above the 200 EMA, another important indicator that technical analysts use to determine long-term trends. A deeper correction may be approaching if the 200 EMA, which is currently trading around $0.104, breaks below this level. Dogecoin's behavior around this average will need to be closely watched by investors, as a decline below it could indicate that the asset is losing long-term support.
Resistance at $0.12
Above the resistance level at $0.12, which Dogecoin was unable to hold during its most recent peak, is the next price level to monitor. Breaking above this resistance could open the door for a bigger rally if the price starts to rise again. On the other hand, difficulties are likely to arise when the asset tries to pick up speed again.
Meanwhile, on-chain metrics show a robust concentration of large holders (62%) and that 73% of holders are still profitable at the current price. It is also possible that some whales are still using Dogecoin despite the recent decline, as there has been a minor spike in large transactions.