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Dogecoin faces resistance at important levels, with an analyst noting that bullish momentum is building up.
The Dogecoin (DOGE) price chart shows a noticeable decline over the past 24 hours, with consistent troughs in its price action throughout the day. The price initially ranged between $0.1425 and $0.1491, but after reaching the upper range, it sharply declined to a new low near $0.141. This drop represents a 4% decrease in price within a single day, suggesting that Dogecoin is facing significant selling pressure.
The ongoing dip in price suggests that the current bullish momentum has fizzled out, and the market is experiencing a short-term correction. Traders will need to closely watch for any potential support around the $0.140 mark, which could serve as a key level to determine whether Dogecoin can reverse the current downtrend or if further declines are likely. What’s next for DOGE?
DOGE Faces Resistance at $0.168
Looking at the charts, Dogecoin faces immediate resistance near the $0.168 mark, aligning with the 0.786 Fibonacci retracement level. This area has proven difficult for the bulls to surpass in recent weeks, with multiple failed attempts to break above it.
However, if Dogecoin can break through this key resistance, it would likely pave the way for higher price targets, with the next resistance zone between $0.198 and $0.218. A sustained move above this resistance zone could signal a strong bullish shift, possibly testing the next resistance around $0.24.
On the downside, the price is approaching key support near $0.13, as indicated by the 1 Fibonacci level. If Dogecoin fails to maintain support at this level, the price could head lower towards the $0.10 mark.
The Standard Deviation indicator at 0.04681 shows calm but slightly increasing volatility. A breakout above $0.168 combined with increasing volatility could lead to larger price swings, potentially driving Dogecoin towards higher resistance levels.
Bullish Momentum Building?
Elsewhere, on X, analyst Trader Tardigrade points out that Dogecoin is showing a pair of Tweezer candlesticks on the monthly chart, signaling a potential bullish reversal. The candles represent the price between $0.117 and $0.156.
This candlestick pattern often occurs during reversal, indicating that Dogecoin has almost completely recovered the losses from the previous month in just eight days, reflecting strong buying pressure. Ultimately, this suggests that bullish momentum is building up for Dogecoin, potentially setting the stage for upward movement.