Dogecoin (DOGE) is currently facing a critical juncture in its price movement. The DOGE price is teetering above the last horizontal support level before a potential substantial decline. In order to avoid a steep fall, it is imperative for Dogecoin to muster a decisive bounce at its current level.
However, this task may prove to be challenging as a persistent downtrend, marked by a descending trendline, has been undermining the efforts of buyers to establish a sustained bullish recovery for nearly two months.
Will Dogecoin be able to break free from this downward pressure and embark on a new upward trajectory?
A Crucial Juncture For DOGE Price
Analyzing the technical aspects of on the weekly time frame reveals a significant decrease at the beginning of June, ultimately reaching the $0.06 horizontal support area. This particular zone holds immense importance as it has remained intact for an impressive 378-day period.
Source: TradingView
Whether the price manages to bounce back above this critical level or succumbs to a breakdown could potentially dictate the future trend for DOGE.
At present, according to , the value of Dogecoin stands at $0.063. However, recent market conditions have not been favorable, leading to a slump in DOGE’s price.
DOGE price at $0.063. Source: Coingecko
Over the course of the past 24 hours alone, Dogecoin witnessed a notable 2.0% decrease. This downward trend has persisted over the past week, with DOGE experiencing an overall decline of 7.2%.
Considering these developments, the current state of Dogecoin’s price raises important questions about its trajectory moving forward.
Potential For Bullish Breakout
Should the back towards recovery, there is a possibility of Dogecoin’s price experiencing a bullish breakout from the overhead resistance it currently faces.
Such a breakout has the potential to alter traders’ mindset, transitioning from actively selling during price rallies to adopting a strategy of buying on price dips. This shift in sentiment could have a significant impact on the market dynamics surrounding Dogecoin.
DOGE market cap currently at $8.83 billion. Chart: TradingView.com
A key factor in this potential shift lies in the concept of flipped support. If the $0.06 horizontal support area manages to hold strong and repel further downward pressure, it could potentially transform into a flipped support level.
Flipped support refers to a situation where a previous resistance level, once broken, now acts as a supportive floor for price movements. In this scenario, the flipped support at $0.06 could serve as a bolstering force, encouraging buyers to step in and drive further recovery for Dogecoin.
Should this unfold, the price of Dogecoin may find itself eyeing the next resistance level at $0.75. Breaking through this resistance could signify a significant achievement for DOGE and attract even more buyers and investors.
A successful breach of the $0.75 resistance could mark a notable milestone, potentially setting the stage for further upward momentum and renewed market enthusiasm surrounding Dogecoin.
Featured image from Personnel Today