Dogecoin Faces Resistance, But Bulls Remain Optimistic

Dogecoin (DOGE), the largest meme-based cryptocurrency, is facing challenges in building momentum amid ongoing market uncertainty.

A well-known crypto analyst recently pointed out that DOGE is encountering resistance at two critical levels: $0.18 and $0.21. The expert suggested that breaking through these levels could potentially trigger a significant bullish rally.

At present, DOGE is trading around $0.17, reflecting a modest 2.75% increase over the past 24 hours. During intraday trading, the price briefly touched $0.175 before facing strong resistance and pulling back. Notably, trading volume has decreased by 10% within the same period, indicating reduced trader engagement compared to the previous day.

Technical analysis indicates that DOGE is exhibiting bearish signs as it retests a breakdown from an ascending trendline. If the price falls and closes a four-hour candle below $0.162, analysts warn of a potential steep decline in the near future. Additionally, DOGE is currently positioned below the 200-day Exponential Moving Average (EMA) on the daily chart, reinforcing a bearish outlook and reflecting weak market sentiment.

Despite the bearish signals, some traders remain optimistic. On-chain data from Coinglass reveals that long positions significantly outweigh short positions. Over the past 24 hours, traders have accumulated $25.60 million in long bets compared to $8.50 million in shorts. This suggests that bullish sentiment still persists, with many betting on a potential upward move despite current resistance levels.

Author

Alexander Stefanov

Reporter at Coindoo

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.