Dogecoin faced selling pressure yesterday, dropping significantly by 14% from the $0.39 level. This decline has prompted a cautious attitude among investors, but Dogecoin remains resilient, holding at crucial demand levels.
Dogecoin is poised to break out
Dogecoin is currently firm at $0.34, a key level that previously acted as supply but has now transformed into a strong demand area. This price action highlights a significant shift in Dogecoin's market dynamics, with the next target being a higher supply zone that could pave the way for further bullish momentum.
Top analyst CROW recently shared a compelling technical analysis highlighting Dogecoin's enormous potential. According to CROW, $1 is merely the first significant milestone for Dogecoin after breaking out of a multi-year downtrend that began in 2021. Escaping this long-term bearish structure would not only solidify Dogecoin's position as a market leader but also open the door for price discovery, a term often associated with explosive gains.
CROW's analysis indicates that Dogecoin's chart shows strong accumulation signs, which is a key phase in the market cycle that often precedes large-scale rebounds. If Dogecoin successfully recovers the $1 level, it could trigger an influx of buying pressure, pushing the price into uncharted territory. This potential shift highlights Dogecoin's ability to attract market attention and maintain its status as one of the best-performing cryptocurrencies.
With market sentiment cautiously optimistic and key technical indicators aligning, Dogecoin appears ready to embark on its new chapter. Investors are closely watching its movement around the $0.34 mark, waiting for a potential breakout that may signal the start of an extraordinary rebound.
Price action shows strength
Dogecoin is currently trading at $0.34, having completely dropped below the significant $0.39 level, which is a substantial supply level. Despite the recent decline, the price action indicates that Dogecoin remains strong, as it is able to hold its current level, becoming a key demand area. This resilience suggests that if broader market sentiment shifts positively, Dogecoin may see a rebound.
The overall market recovery may lay the groundwork for DOGE to challenge last year's highs. The key level to watch is $0.43—recovering and holding this threshold would signal a massive bullish breakout. Such a move could bring significant buying pressure, propelling DOGE into a new phase of upward momentum and potentially achieving price discovery.
However, the downside risk remains. If Dogecoin fails to hold the $0.33 level, selling pressure may intensify, leading to a deeper correction. As the market experiences a period of uncertainty, investors are closely watching these key levels.
For now, the ability of DOGE to maintain the current demand area is a positive sign, indicating that this meme coin still has strong recovery and significant upside potential in the coming weeks.
