Dogecoin has recently entered a crucial phase as it attempts to hold key support levels amidst a downside correction. After a strong rally similar to Bitcoin, $DOGE

is now trading in a positive zone but faces significant challenges to maintain its uptrend.

Key Highlights:

  • Dogecoin price started a downside correction after failing to break the $0.4850 resistance zone.

  • The price is trading above a key rising channel with support at $0.3920 on the daily chart.

  • A break below $0.3380 could lead to a sharper decline, while staying above this level may spark a recovery.

Dogecoin Price Holds Key Uptrend Support

Dogecoin encountered strong resistance near $0.4850, preventing a move toward the psychological $0.50 mark. Following this, DOGE began a correction, dropping below $0.4400 before stabilizing. The recent low was recorded at $0.3660, after which the token managed to regain some ground, trading above $0.380 and holding steady above the 50-day simple moving average (SMA).

Currently, DOGE is positioned above the $0.40 support level, supported by a rising channel on the daily chart. However, the upward momentum appears to be weakening, raising questions about whether the bulls can maintain control.

Resistance Levels to Watch

For Dogecoin to continue its recovery, several key resistance levels must be breached:

  1. $0.4350: The first significant resistance aligns with the 50% Fibonacci retracement of the drop from the $0.4845 swing high to the $0.3660 low.

  2. $0.4550: This level coincides with the 76.4% Fibonacci retracement and could serve as a strong barrier. Breaking it may pave the way for a retest of the $0.4850 level.

  3. $0.50: A decisive move above this psychological threshold could trigger further gains and restore bullish sentiment.

Potential Downside Risks

If #Dogecoin‬⁩ fails to clear the $0.4350 resistance, a deeper correction could follow. Key support levels on the downside include:

  • $0.3880: Immediate support near the rising channel’s trend line.

  • $0.3380: A critical support zone and the 50-day SMA. A break below this level could signal a bearish shift.

  • $0.3050 and $0.2550: These levels represent significant support in case of a sustained decline.

  • $0.2200 or $0.200: In the worst-case scenario, #doge⚡ could revisit these levels in the medium term.

What’s Next for DOGE?

Dogecoin’s ability to maintain gains above $0.380 will be pivotal. To regain bullish momentum, #DOGE must overcome the $0.4350 and $0.4550 resistances in the near term. Failure to do so could lead to increased selling pressure, potentially pushing the price toward $0.3050 or lower.

Investors should closely monitor the price action around the key support and resistance zones, as well as broader market trends. A sustained move above $0.4550 could reignite a rally toward $0.50 and beyond, while a break below $0.3380 might signal further weakness in the coming weeks.